A flow of recent data from the U.S. government has made one thing strikingly clear: A surge in consumer spending is fueling strong growth, demonstrating a resilience that has confounded economists, Federal Reserve officials and even the sour sentiments that Americans themselves have expressed in opinion polls. Spending by consumers rose by a brisk 0.4% in September — even after adjusting for inflation and even as they face ever-higher borrowing costs. Economists caution that such vigorous spending isn’t likely to continue in coming months. Many households have been pulling money from a shrinking pool of savings. Others have been turning increasingly to credit cards. And the additional savings that typical households amassed during the pandemic are nearly depleted.
