Conor Sen: Consumer strength grows despite energy and interest rate headwinds

Conor Sen: Consumer strength grows despite energy and interest rate headwinds
Consumer appears more resilient now

Conor Sen observes that, in nominal terms, consumer spending appears to be getting stronger. He notes that this improvement comes even as consumers are feeling the impact of higher energy prices and rising interest rates.

Sen has recently highlighted how AI investments have increased profits and spending without a measurable boost to productivity or employment in previous commentary. He also noted that $200 billion a year in AI capital expenditures has led to negative free cash flow among hyperscalers, alongside rising interest rates, in a separate analysis (full article). These earlier observations provide context for his current perspective on consumer spending trends.

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