Consumers Are Still Spending 9/3/26

Summary

The video examines why US consumer spending has remained resilient even though consumer confidence has been weak for much of the year. Jan Rogers Niffenegger argues that confidence surveys do not predict spending, with upper-income spending tied to the stock market and middle-income spending tied to jobs. The bottom quintile is struggling but is not a major driver of aggregate spending.

• Consumer spending makes up about two-thirds of US economic growth.
• Consumer confidence has been weak for most of the year.
• Niffenegger says low confidence does not tell you anything about spending.
• Upper-income consumers spend when the stock market is good.
• Middle-income consumers spend when jobs are good.
• The bottom 20% is hurting but contributes little to overall spending.
• Consumers are adjusting to high food, gas prices and geopolitical concerns.
• No specific stock, sector, or asset trade recommendations are made.