State of Consumer Spending Report: Goods + Services Diverge

Victor Lei — Head of Research Economy

Consumer spending has surprisingly held up in the past year — largely a result of increased prices — but also from strong consumption in certain categories. Here’s where consumers are cutting back and splurging. 📉 Goods spending is slowing According to a Morning Consult survey, consumer spending fell a sharp 9.5% in March — echoed…

Read more

The backbone of the U.S. economy showing cracks

Victor Lei — Head of Research Economy

Consumers are the backbone of the U.S. economy — making up nearly two-thirds of GDP. But consumers are showing signs of slowing their spending as economic conditions worsen. In May, U.S. retail sales fell for the first time this year, and recession odds are increasing — pressuring consumers even more. Layoffs: Big layoff headlines have…

Read more