3 of the biggest economic factors hitting Americans' finances

Wealth! Host Brad Smith breaks down three of the biggest economic themes impacting American consumers.

First, ADP released new data revealing annual wage increases in June were at their slowest rate in nearly three years.

Next, a new report from ATTOM shows that major expenses on median-priced homes consumed 35% of the average national wage in the second quarter, the highest level since 2007.

Finally, as Americans gear up for their 4th of July celebrations, the American Farm Bureau Federation found that the average cost for a ten-person cookout is $71.22. That figure marks a 5% increase from 2023 and 30% from 2019. Meat prices are especially high, and are up 11% year over year.

Despite the pressures of inflation, Brad Smith notes that the consumer has overall been resilient.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Melanie Riehl

Video Transcript

Turning now to three stories impacting consumers First up Insight into Workers Pay a big takeaway from the AD P print this morning.

Pay increases for American workers.

They've continued to decelerate here the annual wage increases for workers who stayed in their same job.

That increased at the slowest rate in nearly three years in June.

Here now, for job changers, annual wage increases slid for a third straight month.

And as we talk about how much people are making, we can also see that they're spending more of their wages on housing here.

Housing affordability remains a big pressure point for Americans.

According to Adam, a real estate data firm, Major expenses on median priced homes now consume 35% of the average national wage in the second quarter.

This is the highest level since 2007.

And with housing eating into more of your budget, you may not be thrilled to learn that inflation is hitting your Fourth of July barbecue as well.

According to the American Farm Bureau Federation, the average cost for a 10 person cookout is $71.22.

That's up 5% from last year and up a whopping 30% from five years ago.

Meat prices will greatly affect that budget 2 of ground beef costing an average of $12.77.

That's up 11% from last year.

All together here, the consumer has been resilient, even if increasingly showing normalisation in certain areas.

But there are signs of weakening in the labour market, high mortgage rates remaining burdensome and inflation still hitting Americans wallets as of right now.