U.S. Consumer Slowdown On Its Way

BCA Research - Independent Investment Research Since 1949: "The headwinds to spending are gaining momentum: the combined drag from high energy prices and rising interest payments is the largest in two decades. Until recently, housing wealth had been the key offset to these headwinds, but housing activity is well off the boil, and a mild economic slowdown is in the pipeline. Yesterday, the Fed reaffirmed that the future path of policy will depend on the tone of the data in the months ahead. While consumer spending is not yet weak enough to justify a pause, the housing slowdown, and drag from energy and interest payments, should ensure that a further downshift in spending growth occurs"