Marketplace · Monday, August 31, 2026
Sarah House, a senior economist at Wells Fargo, notes that consumer spending has remained robust even as wages have not kept pace with inflation. However, she expresses concern that this spending is being fueled by decreasing savings, suggesting a need for caution in the latter part of the year.
“Even though people's wages have not been keeping up with inflation for most of this year, you still see consumer spending hold up over that same period.”
“But, Ms. House says, a lot of people have been spending by dipping into their savings.”
“And when we look ahead, I think there's some concern about, well, you can, you can drive the saving rate so low for so long. And so that does suggest some caution in terms of consumer spending in the back part of the year.”