According to the US Census, 45% of Americans feel financially insecure. A majority are spending more than they make (54%). One-third have no savings.
“all households had less slack in their budgets in 2014 than they had a decade before.” – Pew Research
Incomes are rising, but not enough to create a significant shift in widespread financial security. It will take sustained increases to allow people to accumulate enough excess income that they can then begin saving again. In such a situation, it is understandable if people are being more careful with their money, and not engaging in the consumer economy. At least for now.
(Click on the graphic for the link.)