The US economy has continued to show strength as increases in the production of goods and services, also known as GDP growth, has returned to its long-term trend line that it had deviated sharply from during the COVID-19 pandemic. With roughly two thirds of GDP driven by consumption, consumer spending is starting to show signs of slowing which may translate in to a more moderate rate of GDP growth in the quarters ahead. While higher interest rates have benefited some consumers through income earned (and thus spent on goods and services), pockets of consumers are feeling the pressure of persistent higher inflation and higher rates (interest owed on debt).
