I am just going through the Q4 data and I thought the following was interesting:
In nominal terms, the US economy has been unable to increase personal consumption expenditures at an increasing rate since the late 1990s. In real terms, we are stuck at increases seen in the 1980s.
But much of this is supported by a high level of PCE relative to GDP:
We could look at other data (slow wage growth, high government transfers as a % of personal income, income inequalities, high government debt, high unemployment, weak investment fundamentals) and we could also look at high market valuations and wonder just how is this all supposed to add up? Well, it does not, that is the problem!