No pressure, but it’s all up to consumers to heat up the U.S. economy which will then help the rest of the world out as well. Unfortunately, we’re all acting a bit sluggish still in our spending.
Reuters says our spending has only grown by 0.2% over the last three and a half years, the weakest ever since before World War II. Even with the good news of an improving job market, wages are going down at the same time, which makes it more likely for money to stay in wallets.
Household debt in relation to disposable personal income is down but still nowhere near the average range from 1970-2000. This kind of worrisome financial atmosphere means consumption will stay down this year and for years to come, says Stephen Roach, non-executive chairman of Morgan Stanley.
“With retrenchment and balance-sheet repair only in its early stages, the zombie-like behavior of American consumers should persist,” he told Reuters.
Zombies are the cool thing in TV and movies these days but that doesn’t mean we should all be shuffling around half-dead. Go buy something, ye undead!