All articles tagged with #consumer spending
A BuzzFeed piece aggregating Reddit responses shows many people have stopped buying pricier items in 2026 due to inflation, from steak, concert tickets, and cocktails to cars, magazines, and haircuts, illustrating a broad shift in consumer spending as costs rise and people seek to cut back.
U.S. inflation accelerated in December as the Commerce Department’s PCE price index rose 0.4% for the month and 2.9% from a year earlier, the fastest yearly rise since March 2024. Core PCE also climbed 0.4% MoM and 3.0% YoY. Yet spending rose 0.4% and while gas prices fell, electricity and natural gas costs rose. The Federal Reserve left rates around 3.6%, with officials wanting inflation closer to 2% before considering rate cuts.
US GDP rose at a 1.4% annualized rate in Q4 2025, undershooting economists’ expectations of about 3%, as disruptions from the government shutdown and softer consumer spending weighed on growth. The CBO estimated the shutdown shaved roughly 1.5 percentage points from Q4 GDP, with most lost output expected to be recovered. AI-related investment and tax cuts are seen as supports for activity later in the year, even as the economy remains uneven and inflation pressures persist.
The U.S. economy expanded at an annual rate of 1.4% in the fourth quarter, a softer pace than expected, as a federal government shutdown and a pullback in consumer spending weighed on growth and tempered expectations for the year ahead.
Global video game content sales rose 5.3% to $195.6B in 2025, even as private funding fell about 55% and layoffs persisted. Outsourcing climbed to 35.5% of content investment, with notable titles like Hollow Knight: Silksong and Palworld relying heavily on external work. Console spending grew modestly while platform services dominated growth; PC spending rose 30% since 2020, and China accounted for roughly 20% of global player spend. Roblox emerged as the key growth driver, and analysts foresee 2026 growth in non-core markets, advertising, direct-to-consumer and alternative payments, external development, and Roblox.
Investors will parse housing data (starts, permits, pending sales) and a run of earnings, headed by Walmart before the open, to gauge consumer demand; Walmart has jumped over 20% this year as shoppers seek bargains, while GDP is expected to rise about 4.4% in Q4 ahead of Friday's data on consumer sentiment and personal income.
Rising coffee prices are forcing some Americans to alter their daily routines—buying cheaper brands, brewing at home more, or skipping their usual cup—highlighting how inflation is reshaping consumer spending on everyday beverages.
U.S. retail sales were unchanged in December, missing economists’ expectations of about 0.4% growth and reversing November’s gain. The flat month came as furniture and miscellaneous stores fell (-0.9% each) while home improvement rose 1.2%, and the control group slipped 0.1%. The report, seasonally adjusted but not inflation-adjusted, was delayed by last year’s government shutdown. Despite slower hiring and stubborn inflation, Americans haven’t slashed spending, but December’s stagnation suggests consumer activity may be nearing a spending ceiling.
A new study finds that spending by wealthy households is rising while spending by middle- and lower-income Americans remains largely flat, signaling a widening gap in consumer behavior.
Weight-loss injections are changing UK spending patterns: about 1.6 million people used GLP-1 weight-loss jabs in 2024, with private users paying over £300 a month. Users report smaller grocery bills due to reduced appetite and a shift toward nutrient-dense, protein-rich foods, while some still face high drug costs. Dining out and takeaway purchases are down, alcohol intake is dropping for some, and fashion and fitness sectors see increased activity as people replace wardrobes and invest in wellness. The overall effect is a pivot toward health-focused spending, with costs influenced by the drugs themselves.
U.S. GDP rose at a 4.4% annual rate in the third quarter, led by robust consumer spending, marking the fastest growth in two years and signaling resilience in the economy.
Prices rose in November as Americans continued to spend, with the personal consumption expenditures price index indicating ongoing inflation.
U.S. personal consumption expenditures price index rose 0.2% in November, leaving inflation at 2.8% for both headline and core (October was 2.7%), with energy costs up and food flat. Personal income rose modestly, while spending climbed 0.5% in October and November. The saving rate edged up to 3.5% in November. GDP growth for Q3 was revised to 4.4%, and jobless claims remain near two-year lows, signaling continued spending resilience. Investors expect the Fed to hold rates at the upcoming meeting, with futures pricing in up to two rate cuts later this year.
A Moody's Analytics analysis of Fed, BEA and Census data shows 59% of U.S. consumer spending comes from the top 20% of earners, while the bottom 80% accounts for 41%—a near-record K-shaped divergence. With inflation and a weak job market weighing on most, high-end households and stock-market gains are sustaining spending and wealth, which is now at its highest since World War II. If the rich slow down or markets falter, lower-income workers would bear the brunt.
US retail sales rose 0.6% in November, beating economists’ expectations after October’s revised pullback, with gains broad across categories (specialty stores +1.9%, gas stations +1.4%, home improvement +1.3%). The core 'control group' increased 0.4%. After adjusting for inflation, sales were up 0.3% from September to November, underscoring consumer resilience into the holiday season and into 2026 as tax refunds and policy shifts are expected to support spending despite a softer labor market.