Younger consumer seeing less wage growth, less purchasing power, says JPMorgan's Chris Wheat

Income Growth & Labor Market - JP Morgan Chase Institute's report indicates tepid income growth overall, with a recent decline, particularly among younger consumers [3] - Younger workers are experiencing less income growth compared to previous years, leading to reduced purchasing power [4] - Lack of job mobility among younger individuals suggests uncertainty in the labor market, potentially influencing employer investment decisions [9][10] - Job turnover, driven by individuals seeking better opportunities, can be a positive indicator for the economy [11] Consumer Spending & Economic Implications - Chipotle observed a pullback in spending across all income groups, with the 25-35 year-old demographic being particularly affected [1] - The struggles of the younger population serve as a signal for the overall state of the labor market [2] - Income is a primary driver of spending, with savings and investment also playing a role [5] - Increased investment by young people may reflect rising asset prices, such as housing [5] - Disparities in asset ownership (stocks, housing) contribute to spending differences between younger/lower-income and older/higher-income groups [6] Forward-Looking Perspective - The analysis focuses more on explaining past trends than predicting future outcomes [8]