Households Are Borrowing More to Fuel Spending, Wells Fargo Says
- Savings rates are falling, debt-to-income ratios are rising
- Americans appear confident even amid slow wage growth
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U.S. households may be borrowing more to fuel their spending as wages grow slowly, according to Wells Fargo & Co.
Consumer spending may be rising because Americans are growing more confident, analysts John McElravey and Ryan Brinkoetter wrote in a presentation to clients Monday. Savings rates are falling, and a measure of debt levels has been edging higher relative to income recently after plunging in the years following the crisis.