US consumers have been scaling back their spending amid rising inflation and economic concerns, according to a report by Synchrony. Purchase volumes across industries are declining, with Americans accumulating more debt and increasing delinquencies expected as student loan forbearance ends.
The slowdown in consumer spending has significant implications for the US economy, where high prices and economic uncertainty have taken their toll on household budgets. With inflation biting, consumers are re-evaluating their spending habits and prioritizing essential expenses over discretionary purchases.
As a result, delinquencies on credit accounts are likely to increase as student loan forbearance comes to an end. This trend has significant implications for lenders and policymakers, who must navigate the challenges of a slowing economy while addressing growing debt concerns.
The data highlights the impact of high inflation on consumer spending, underscoring the need for policymakers to take steps to address economic uncertainty and promote growth.
Source: https://www.reuters.com/world/us/us-consumers-slow-spending-inflation-bites-synchrony-says-2025-03-25