This page looks at U.S. consumption and investments. On the left chart, the line charts looks at real wage growth and real personal consumption expenditure. Despite strong nominal wage growth over the past year, household consumption may soften over the coming months as real wage growth, shown by the grey line, has been negative due to high inflation. This decline in spending power may be further exacerbated as savings accumulated during COVID-19 runs thin, and as household asset growth in real terms has also fallen into negative territory. As inflation softens in 2023, and real wage growth moves back to positive territory, consumption should begin to normalize. The chart on right looks at business fixed investments and businesses' investment intentions. A decline in investments have typically been a main driver of recessions in past economic downturns. Given the high interest rate environment and unfavorable outlook on economic growth, business investments are likely to slow over the coming months.