May 18, 2024

Americans are kicking the can down the road on some more-costly, traditionally financed purchases as elevated inflation and interest rates bite.

Corporate executives this earnings season have lamented that customers are disinterested in shelling out on big-ticket items for their bedrooms, backyards and everywhere in between. It comes at a pivotal moment for the national economy: the average Joe has been contending with a double-whammy of high prices and borrowing costs, while economists and policymakers are trying to gauge the impact this has made.

This matters because it adds to a growing picture of consumer spending finally slowing down, as experts long anticipated. That means the Federal Reserve may get the sign it’s been waiting for that interest rate hikes have had their intended effects of tightening the economy, which could be good news for investors and consumers.

Read more:

https://www.cnbc.com/2024/05/18/some-consumers-are-punting-big-purchases-like-pools-and-mattresses.html