SocGen warns record $19.9 trillion US household debt signals economic strain
Société Générale warned that US household debt has climbed to a record $19.9 trillion while the personal savings rate fell to 2.6% in April, near a historic low. The bank said income growth has begun to slow, increasing the risk that consumer spending could weaken sharply. It also argued that debt is delivering less lift to GDP, with credit intensity dropping to its worst level in 70 years. The combination, it said, could create systemic pressure for a stock market heavily reliant on consumer demand, particularly indexes concentrated in high-valuation technology shares.
