Consumer Confidence and Excess Savings during the Pandemic
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– Analysts indicate that consumers are not worried about job loss in the next year, as per the Federal Reserve’s monthly household survey.
– People are not significantly altering their spending habits due to income loss, despite gradually depleting their extra savings accumulated during the COVID-19 period.
– Expectations for a normal decrease in inflation growth through consumer spending are low, as there is no transition towards savings accumulation.
– The future remains uncertain regarding the utilization of these excess savings once they are depleted, whether the consumer model will change or ordinary savings will persist. [/s2If]
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