In a drastic turn, US boat sales, once thriving during the pandemic, are expected to plummet to a decade low, driven by the impact of soaring interest rates. The average per-person collection amount has surged from about $1,200 last year to over $1,600 in Q3 this year, signaling intensified financial strain. As 92% of Americans adapt their spending habits and gross domestic product and income diverge to levels not seen since 2007, urgent challenges emerge in the economic landscape.
Compounding the pressure, credit card debt has soared past the $1 trillion mark, reaching unprecedented levels. The Federal Reserve’s assertive interest rate hikes have pushed credit card interest rates to a staggering 21.19%, further squeezing consumers. This economic strain is accentuated by the fact that only 39% of Americans can cover a $1,000 emergency expense.
Consumer spending, a vital economic driver, faces headwinds as nearly all Americans express concerns about the current state of the economy. Despite these worries, a quarter of consumers are partaking in “doom spending,” defying economic and geopolitical uncertainties. Even brands targeting the upper middle class are grappling with challenges, according to reports from Bloomberg.
The prevailing economic conditions paint a challenging picture for the nation, emphasizing the urgent need to address rising debt, income disparities, and bolster financial resilience among American households.
Sources:
US boat sales — which soared during the pandemic — are estimated to reach a decade low this year, another victim of higher interest rates pic.twitter.com/8Ny4AVB6qx
— Win Smart, CFA (@WinfieldSmart) November 30, 2023
The average collection amount per person in the third quarter of this year was over $1,600 — compared to around $1,200 last year, per Axios.
— unusual_whales (@unusual_whales) November 30, 2023
Nearly all Americans are cutting back on their spending in some way, according to a new CNBC and Morning Consult survey.
The survey found 92% of Americans are pulling back, further evidence of what retailers like Walmart, Target, Home Depot and Best Buy called out as cautious… pic.twitter.com/B7rt8iSrHg
— floridanow1 (@floridanow1) November 30, 2023
Gross domestic product and income have recently diverged to a degree last seen in 2007 pic.twitter.com/JkCpItbD3C
— Win Smart, CFA (@WinfieldSmart) November 30, 2023
Credit card debt has been rising aggressively
It has now made new highs, surpassing the $1 trillion mark
This is happening as the Fed has raised rates in an unprecedented way.
Resulting in credit card interest rates reaching 21.19%
To make things worse, only 39% of Americans… pic.twitter.com/miJQoQgL99
— Game of Trades (@GameofTrades_) November 30, 2023
- Nearly all Americans are concerned about the current state of the economy.
- Still, many continue to spend more and save less.
- “Doom spending” may be one way to cope with stress as economic fears mount, however, it comes at the expense of your financial well-being.
The upper middle class is now the middle class
Or, more accurately, there is the upper class (top 5%) and everyone else
— Amy Nixon (@texasrunnerDFW) November 29, 2023
🔊 … "We have elderly people who, in order to put food on the table, have to work at Walmart even though they are 80 years old"
"People who are in their 30s and 40s and who do have a good career have moved back in with their parents because they can't afford the price of rent"… pic.twitter.com/s7Do2b6AQH
— Wall Street Silver (@WallStreetSilv) November 30, 2023