[whell]

Originally Posted by finnbow

The economy grew at a robust 4.9% annualized rate in the last quarter on the back of strong consumer spending and lower inflation, a far cry from the recession many had once predicted the US would be in by now.


https://www.nytimes.com/2023/10/26/b...conomy-q3.html

...and then the bill will come due. Will folks be able to pay it?

Credit card debt has reached a record high. Here's what it means for the economy.

U.S. consumers, who account for nearly three-quarters of U.S. economic activity, drove breakneck economic growth in recent months, Mary Hansen, an economics professor at American University, told ABC News. The data released this week suggests the consumer spending was fueled in part by debt, she noted.

"Consumer spending, which we all know is the base of GDP, is really being held up by credit card debt and maybe it's not sustainable," Hansen said.

Also:

Overall delinquency rates on a range of consumer loans -- including credit card, auto and student borrowing -- ticked up to 3% over a three-month period ending in September, the Fed report showed.

"The increase in credit card debt and delinquencies reflects in part the increased financial stress on lower-income households, who have been hit hard by the higher cost of living," Mark Zandi, chief economist at Moody's Analytics, told ABC News.