People are losing faith in their own wallets.
Only 35% of consumers now expect higher income next year. Worse: just 8% think their raises will beat inflation.
This is the quiet part of the economy that doesn't show up in GDP prints or job reports. It's the psychology that drives spending pullbacks six months from now. When people don't believe they're getting ahead, they stop acting like they are.
We've seen this movie before. Confidence doesn't collapse all at once. It erodes. Then one day everyone wakes up and realizes the party ended months ago.
Watch what people do with their money, not what the headlines say about the economy.
Only 35% of consumers now expect higher income next year. Worse: just 8% think their raises will beat inflation.
This is the quiet part of the economy that doesn't show up in GDP prints or job reports. It's the psychology that drives spending pullbacks six months from now. When people don't believe they're getting ahead, they stop acting like they are.
We've seen this movie before. Confidence doesn't collapse all at once. It erodes. Then one day everyone wakes up and realizes the party ended months ago.
Watch what people do with their money, not what the headlines say about the economy.