JPMorgan Watching Consumer Spending as Inflation Creeps Up | PYMNTS.com

JPMorgan is flagging that consumer spending could slow if inflation remains elevated, even as overall resilience endures. Marianne Lake told the Morgan Stanley U.S. Financials Conference in New York on June 9 that while consumers are still spending, a small segment is not seeing wage gains keep pace with rising prices, posing risk if inflation stays higher for longer. Inflation rose at its fastest pace in three years in April, driven by energy prices linked to the U.S.-Iran tension, eroding real incomes. Lake noted cash cushions have diminished from post-pandemic levels, even as unemployment remains low and labor demand softens somewhat. Reuters covered the remarks as Goldman Sachs CEO David Solomon warned of changing consumer behavior in the second half if inflation accelerates. PYMNTS intelligence shows a growing gap between what households try to do and what actually works, with 80% of so-called ‘Pressure-Driven Cutback Consumers’ cutting everyday spending last quarter, and only about one-sixth reporting effectiveness.