Consumer Savings and Confidence on How to Spend it

Morgan Stanley Headquarters in New York City.
Morgan Stanley Headquarters in New York City.

Consumer confidence is a crucial driver of the economy. This includes individuals struggling due to the latest happenings in the economy, such as inflation, COVID-19 impact, and rising unemployment.

Under these circumstances, Morgan Stanley says conditions may be easing. But they had a warning for consumers.

Consumer savings

First, they state a point on consumer savings throughout the pandemic when governments supported people worldwide. This created a massive increase in consumer savings.

The common idea is that these savings will be transferred into the market. But Morgan Stanley says that the story is much more complicated.

The bank says that the main reason for money not entering the market yet has been the wealth of the consumers already in the market.

For examp...

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