US Real Wages Decline for Six Months, Threatening Consumption-Driven Growth

Real wages in the US have been declining for six months, a trend that threatens the consumption-driven economy and poses a political challenge for President Trump ahead of midterm elections. The decline is corroborated by recent data, though the exact magnitude and duration are uncertain. This matters because consumption accounts for nearly 70% of US GDP, and sustained wage erosion could dampen growth and inflation expectations.