The U.S. consumer accounts for over 70% of the U.S. economy. Our ability to spend money recklessly appears to finally be catching up with us. For those still holding out for a second half economic recovery I’ll point you to this chart:
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Consumer spending has only declined minimally from peak to trough thus far. In both the ’73 & ’81 recessions consumer spending declined 2.5%+ year over year before bottoming. We have yet to reach that level and in my opinion this recession is far more devastating than either of those.