SFS Insights: US Household Balance Sheets in Great Shape
US households are in excellent shape, the ratio of liabilities to net wealth has declined 50% since the 2008 financial crisis, and household leverage is currently at levels last seen in the early 1980s, see chart below. If the unemployment rate rises, consumer spending will slow down, but the starting point for US households is very strong.
Source: FFUNDS, Haver Analytics, Apollo Chief Economist