As the Omicron virus spread and supply chain issues impacted purchases, spending among consumers fell 0.6% (or 1% when adjusted for inflation) last month. This being the first decline in over a year, it is clear that Omicron is affecting the economy, but there is little evidence that it has done more lasting damage. As a whole, Americans have accumulated around $2.5 trillion in extra savings. However, savings for lower-income households have decreased in recent months, and monthly payments through the Child Tax Credit have recently expired.
Consumer Spending Falls as Omicron Spreads
