The article argues that household real spending power is eroding, based on the latest personal income and spending data, marking the first such decline since the post-covid inflation peak. This suggests a fragile consumer environment that could weigh on economic activity and risk assets.
•The benchmark personal income and spending data released yesterday confirm the continued erosion of household real spending power.
•This is the first time since the height of the post-covid inflation that such a sustained decline in real spending power has been recorded.
•The data point to a weakening consumer backdrop, with implications for spending-dependent sectors.