The strength in consumer demand has been one of the defining characteristics of a very resilient U.S. economy and September’s retail and food services sales report confirmed that the U.S. consumer is alive and well. Recent upward revisions to excess savings accumulated during the COVID-19 pandemic, especially in higher-income households, help partially explain how consumers have kept on consuming. The other partial explanation continues to be the strength of the U.S. labor market, which continues to provide the impetus for the U.S. consumer to remain engaged in the economy even if it requires going further into debt. ... (full story)