The US Consumer Is Starting to Buckle

Rising gas prices and a decade-high delinquency rate on credit cards are straining US consumers. Declining consumer confidence in September poses a risk to the US economy, heavily reliant on spending. Moody’s warns of worsening debt quality. Major retailers, including Target, report reduced spending. Young and low-income consumers are especially vulnerable, with subprime auto loan delinquencies reaching unprecedented levels. Citigroup anticipates a sharp increase in default rates by next year.