, Columnist
Don't Rely on U.S. Consumers to Power Global Growth
American households have maintained spending by taking on debts that could prove unsustainable.
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U.S. consumers account for 18 percent of global gross domestic product, and it’s tempting to rely on them to continue carrying the aging recovery to support world growth. The data and growing lender anxiety, though, suggest investors should prepare for what is increasingly looking like an inevitable slowdown in economic growth next year.
Although American households managed to maintain their spending levels in the face of dwindling prospects for future economic expansion, they have done so by taking on incremental debts, which could soon prove unsustainable.