U.S. consumer spending buoyed by mounting credit card debt may be delaying a recession.
This is happening as the least well off are increasingly relying on credit in their day-to-day lives.
Roughly 29% of households earning less than $50,000 a year were using credit cards to finance their spending , according Bank of America Institute economists. Credit-use rates have risen steadily in recent years despite being below higher pre-pandemic levels. Moderate-income Americans also are facing the significant headwind of less tax-refund money. The average refund this year is $2,777 through April 28, down 8% from the same period last year, according to"Because this is the same household that rely more on the tax refund to finance their spending, a lower refund really has some negative impact on their spending," said Anna Zhou, an economist at the Bank of America Institute.
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