Despite recent consumer sentiment reports that reveal concerns about household income, holiday season spending and the employment outlook, Bank of America’s Holiday Spending Media Roundtable this week painted a more optimistic picture.
Through the lens of an economist, the consumer, and in fact, the entire economy, is more resilient than some think. And in regard to consumer spending, the so-called “K-shaped” economy might be changing into a “C.”
Shruti Mishra, U.S. economist at BofA Global Research, said the U.S. economy continues to defy expectations as consumer resilience, driven by a broadening labor market and substantial wealth buffers, keeps growth comfortably around trend. Amid persistent fears of an impending slowdown, recent financial data highlights an economy firing on all cylinders, anchored by strong retail spending and a powerful investment wave in artificial intelligence infrastructure.
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Mishra said the macroeconomic picture is far brighter than popular narratives often suggest. While economic forecasts frequently emphasize risk, underlying demand indicators point to a robust economic engine entering the fourth quarter.
S. economy, there’s actually quite a lot to feel good about right now,” Mishra said. She said growth remains steady, the labor market stays balanced and the nominal economy continues to boom, led primarily by capital expenditure in technology and a surprisingly persistent consumer base.
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