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Yes—U.S. Retail Sales accelerated in September. But before you interpret that as a bullish economic signal, consider the source of this spending cautions Brian McGough.

“Leverage is going higher, personal savings rate is coming down,” Hedgeye’s Retail analyst explains in this clip from The Macro Show.

“That’s what’s driving personal spending and retail sales. That is not healthy. That’s not a good setup for 2024. Expectations for 2024 are through the roof. People are expecting tremendous growth in 2024, and that simply isn’t going to happen.”

The personal savings rate has decreased every month since May. Americans have been dipping into their nest eggs to finance their desires and necessities.

“People have less in the bank than they did pre-pandemic, at a point where the bank is finally paying you to have money in the bank,” McGough adds. “But instead, people are spending it. Why? Because we’re Americans, and we spend.”

Watch the full clip above.

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