WS #16408
US consumer sentiment edged down to a five-month low in October, depressed by high prices and rising interest rates, contradicting the soft landing thesis. However, American Express reported 9% growth in consumer spend, matching top-tier banks, suggesting that while morale is low, high-income consumers are still spending. This divergence points to a bifurcated consumer base, with the broader economy remaining vulnerable to rate hikes.
Consumer Fragility & Macro Data
US consumer sentiment edged down to a five-month low in October, depressed by high prices and rising interest rates, contradicting the soft landing thesis. However, American Express reported 9% growth in consumer spend, matching top-tier banks, suggesting that while morale is low, high-income consumers are still spending. This divergence points to a bifurcated consumer base, with the broader economy remaining vulnerable to rate hikes.