This is a chart of the percent change from the preceding quarter in personal consumption expenditures.
The last time this figure decreased was in 1992. That is 16 years ago. How long can this trend of positive growth continue? The US savings rate (income - expenditures) has been negative for the past 5 quarters.
Household debt has increased to over 90% of GDP and 120% of disposable income. US households greatly increased debt acquisition over this expansion, as this chart of the year-over-year percent change in household debt indicates.
Debt payments now consume the largest amount of disposable income on record.
How much more can the US consumer purchase before he pulls in his wings?
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