Also, in the fourth quarter, Americans’ wages grew at the weakest pace in more than four years and a greater share of households fell further behind on their debt, according to separate reports out Tuesday. Still, economists widely expect bigger tax returns and the Federal Reserve’s string of interest-rate cuts last year to drive growth. “There has been a lot of damage done the last few years to household finances – with rising inflation, rising cost of living pressures, rising interest rates,” Ted Rossman, principal analyst at Bankrate, told CNN in an interview. Meanwhile, retail spending edged higher in a handful of categories, rising the most at home improvement stores (1.2%.) Well-to-do households are seeing their wealth increase and are powering spending, while lower- and middle-income households are experiencing increased strain.

Source: CNN February 10, 2026 14:19 UTC