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Economists: Rising energy costs are eroding U.S. households' spending power
Svmuu News: Paolo Zanghieri, Senior Economist at Generali Investments, noted that rising energy costs and persistent inflation are taking a toll on U.S. households, while real income growth has already slowed, leading to a weakening in consumption growth momentum. U.S. household consumption growth is projected to reach just 1.7% in 2026, about one percentage point lower than in 2025. The primary driver of this slowdown in consumption growth is the deterioration of the labor market. Private-sector job growth has essentially stalled, with hiring activity at its lowest level since April 2020, and a decline in turnover rates signals that future wage growth will slow. (Jin Shi)
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