“

With labor market conditions poised to cool further amid tighter financial conditions and growing financial market uncertainty likely to dampen households’ willingness to spend, we foresee soft consumer spending growth in coming quarters, recent data on household spending and credit growth indicate that we will likely see a K-shaped consumer spending pattern in 2023, with low- and median-income families exercising more spending restraint, and families at the higher of the income spectrum still spending, albeit with more discretion.