And finally, in 2015, wage growth started reaching more workers, which is probably one reason consumer sentiment on the economy has jumped in recent months. All of those are head winds for consumer spending. As for tail winds, I expect that as we close in on full employment, blue-collar pay should accelerate, which will boost consumer spending. So this ain’t over, as long as the job market continues to tighten up. So, watch the job market and the real wages of regular workers.

Source: Washington Post April 17, 2017 13:41 UTC