GS: Will Consumer Spending Ever Recover?

Consumption growth or household spending has slowed meaningfully since the financial crisis. Over the past decade, consumption growth in advanced economies has averaged a compound annual growth rate of 2.9% between 2004 and 2014, compared to a CAGR of 4.3% between 1994 and 2004. Consumer Spending: What We Can Learn By Going Back To School Consumption growth has slowed considerably due to a number of factors, including negligible wage growth, job stagnation, rising income inequality and less access to credit. But can household spending growth ever pick up again? That’s the question Goldman Sachs investigates in a new research report…