October 2023 / VIDEO
Two Key Risks Facing Consumer Spending, the Engine of the US Economy
Consumer fundamentals seem to be weakening from a strong position
Consumer spending historically has been a key driver of growth as it has typically made up over 70% of the economy.
Today, consumer balance sheets appear healthy. However, we see two key risks to consumer spending: rising credit card debt and delinquencies and the resumption of student loan repayments.
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Blerina Uruçi is the chief U.S. economist in the Fixed Income Division. She contributes to the formulation of investment strategy and supports investment and client development activities throughout T. Rowe Price, specifically focusing on the outlook for the U.S. economy, inflation, and monetary policy. Blerina is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.