Economist: rising energy costs have weakened the consumption capacity of American households

Golden Ten Data reported on April 15 that Paolo Zanghieri, Senior Economist at Generali Investments, pointed out that rising energy costs and persistent inflation are impacting American households, while real income growth is already slowing, leading to a weakening momentum in consumption growth. It is expected that in 2026, the consumption growth rate of American households will be only 1.7%, about one percentage point lower than in 2025. The main reason for the slowdown in consumption growth is the deterioration of the labor market. Employment growth in the private sector has basically stagnated, hiring activity is at its lowest level since April 2020, and a decline in quit rates suggests that future wage growth will slow down.