Markets on a Monday: The Consumer Strikes Back

There’s no doubt the start of this decade has been one of the most challenging environments for markets and businesses to navigate. In the last two years we’ve seen a global pandemic that triggered a myriad of supply chain issues and unprecedented monetary accommodations from central banks around the world that resulted in the highest inflation seen in 40 years. In addition, Russia’s invasion of Ukraine has up-rooted commodity markets and challenges the power and influence of the Western world.

Despite all the madness, markets remain resilient and US consumer spending remains near record highs.

With consumer spending accounting for roughly 70% of US GDP, its unlikely the US will see a severe recession unless consumer spending significantly drops off, instead of leveling off like it has been for the last few months.