Trouble is brewing for the U.S. consumer, according to one strategist, and a substantial labor market downturn could kickstart a recession.
"I think the U.S. consumer is walking towards a cliff, basically," Chris Watling, chief executive of financial advisory firm Longview Economics, told CNBC's "Squawk Box Europe" on Tuesday.
He said that a slew of recent economic indicators had showed consumers are quickly running out of excess cash, while household savings are coming under pressure.
I mean, quite the reverse, I think there are some real challenges coming for the U.S.
Gross domestic product is projected to post a 4.7% annualized gain for the third quarter, according to a Dow Jones consensus estimate.
Persons:
Chris Watling, CNBC's, Watling, Dow
Organizations:
Longview Economics, Gross, Dow Jones, Commerce Department
Locations:
U.S, Longview