Consumer spending fuels economic growth…Job and wage growth helped counter the hit to consumers wallets from rising inflation, but a continued slowdown or reversal there could tip the scales…“While these indicators do not necessarily predict a recession, especially with a robust labor market, a weakening in employment conditions could exacerbate household financial instability,” said Gregory Daco, EY chief economist. “The combination of subdued job growth, sluggish income progression, and diminished savings could lead to increased delinquencies and a potential retrenchment in consumer spending.”…retail spending unexpectedly stalled in April in a sign of consumer fatigue and worry. Walmart, the nation’s largest retailer, has said its customers are spending more on necessities and less on discretionary goods like home furnishings and electronics.

Why does no one talk about the cost of housing? Housing is astronomically expensive, and the more people have to spend for housing, the less they will have to spend on everything else.