Bob Elliott
· Nonconsensus
· March 06, 2026 at 11:06
· ⏱ 3 min read
| Read on Substack ↗
Summary
The author discusses the dynamic of US household spending outpacing income growth, which is being financed by a declining savings rate. The central question for the US economy is how low this savings rate can go, with upcoming payroll and wage data being key indicators for future consumer demand.
•US household spending continues to grow faster than income.
•The gap is being financed by households saving less.
•The sustainability of this low savings rate is the biggest macro question for the US.
•Upcoming payroll and Average Hourly Earnings (AHE) data will be crucial for assessing the future of consumer demand.