"Rising Recession Concerns as Americans Increase Spending and Decrease Savings"
Americans are saving less and spending more, with the personal saving rate dropping to 3.8% in January, well below pre-pandemic levels. This trend is expected to weaken consumer spending and make the economy more vulnerable to a slowdown or recession, especially as more Americans retire. While some are feeling more confident about the economy, others, particularly low- and middle-income households, are struggling financially, with credit card debt at a record high and delinquencies rising. While economists don't forecast a downturn, they acknowledge the risk of weaker spending as wage growth slows and job gains decrease.