Investors predict a potential recession in the U.S. within the next year.

A survey of 526 investors reveals that 56% believe personal consumption, a driver of economic growth, could decline in early 2024.

Another 21% believe this decline could occur in the fourth quarter of 2023.

Only 23% of investors are optimistic about the future, expecting no decline in personal consumption.

High borrowing costs are seen as a significant factor in eroding savings accumulated during the COVID-19 pandemic, leading consumers to cut back on expenses.

Factors that have driven the market up include falling inflation, an end to Fed tightening, stable interest rates, a stable dollar, and stable oil prices.

In the second quarter of 2023, personal consumption contributed to 68.3% of Gross Domestic Product (GDP).

Personal consumption expenditure increased by 3.3% in July 2023 but has fluctuated from higher rates in previous months.

Americans' personal savings, which hit a peak of nearly $6.5 trillion in April 2020, have since declined to only $705 billion.

Rising interest rates driven by the Federal Reserve, record household debt, and the resumption of student loan payments for

younger Americans are additional factors weighing on consumers' financial outlook.