Consumer spending

New data suggests that the spending gap between wealthy and lower-income Americans, previously described by the 'K-shaped economy,' may be narrowing. However, economists disagree on what caused this shift or if it is sustainable, noting that higher-income consumers still drive the majority of consumer spending. Concerns remain regarding persistent inflation, wages, and reliance on credit for maintaining general household spending.

The US economy grew at a sluggish 1.5% annual rate in Q2 2026, driven by consumer spending and AI-related business investment but weighed by rising imports. Mortgage rates hit a one-year high, with the 30-year fixed rate reaching 6.66%, while consumer confidence fell to 90.8 in July amid rising gas prices and geopolitical tensions.

The U.S. economy slowed in the spring due to the Iran war's impact on growth, but consumer spending increased by 3.2% and business investment remained strong, offsetting higher energy prices and rising imports.

US GDP growth slowed to 1.5% in Q2 2026 due to rising AI-related imports, though consumer spending increased by 3.2%. The Federal Reserve’s inflation measure remained above its 2% target, and underlying economic strength showed growth despite import-driven drag on GDP.

The U.S. economy grew 1.5% in Q2 2026, below the 2.1% Q1 rate, as rising imports reduced growth. Consumer spending rose 3.2% annually, AI investment surged, but inflation remained above the Federal Reserve’s 2% target at 3.7%. The Fed held interest rates steady despite dissent from regional presidents.

US economic growth slowed to a 1.5% annualized rate in the second quarter due to a widening trade deficit, but consumer spending accelerated and business investment in AI infrastructure remained robust. The Commerce Department’s Bureau of Economic Analysis released the advance GDP estimate on Thursday.

The US economy grew at a 1.5% annual rate in Q2 2026, with consumer spending rising but imports reducing growth. Inflation, as measured by the Fed's PCE index, remained above the 2% target at 3.7%, despite a slight monthly decline in prices.

The U.S. GDP grew 1.5% in the second quarter, but the economy showed stronger performance due to consumer spending and business investment despite the ongoing Iran war.

China’s electric vehicle (EV) industry is central to global economic and geopolitical trends, including consumer spending, environmental protection, and technology. The article explores whether China’s policy strategies could serve as a blueprint for developing countries to build their own EV sectors.

Jersey Mike’s is attempting an IPO, inspired by SpaceX's success, to gauge investor interest in the sandwich sector amid concerns about consumer spending. The float serves as a test for the industry's current market conditions.

Private credit is backing a trend that is propping up US consumers, providing financial support to sustain consumer spending.

As inflation rises globally due to the Iran war, Americans are maintaining resilient consumer spending through tax refunds and stock gains, while Europeans are increasing savings and prioritizing essential purchases. The psychological impact of inflation is deeper in Europe due to wartime scarcity memories, with the Iran conflict exacerbating consumer concerns.

Consumer spending has increased again, and cheaper gas prices are expected. Inflation is projected to slow during the summer.

The U.S. economy grew at a 2.1% annual pace in Q1 2026, up from a prior estimate of 1.6%, driven by business investment in artificial intelligence. This rebounded from 0.5% growth in Q4 2025, which was impacted by a 43-day government shutdown. Consumer spending declined sharply, but the job market remained resilient with 188,000 monthly job gains from March to May 2026.

The U.S. economy grew at a 2.1% annual pace in Q1 2026, up from a prior estimate of 1.6%, driven by surging business investment in AI and increased government spending post-shutdown. However, consumer spending declined due to higher gasoline prices linked to the Iran war, and residential investment fell 7.8%, marking a fifth consecutive quarterly drop.

China's 618 shopping festival experienced a sharp growth slowdown, reflecting ongoing challenges in consumer spending. Latest consumer data indicates that consumption in China remains subdued.

Pasadena's small and midsize businesses are facing inflation, higher operating costs, and uncertain consumer spending as they enter the second half of 2026. Paul Little of the Pasadena Chamber of Commerce noted business conditions are 'about the same, or maybe a bit more challenging' compared to the start of the year.

China experienced its first decline in consumer spending since the pandemic, as reported by The China Show on June 16, 2026. The drop marks a significant shift in economic activity following years of post-COVID recovery.

China's consumer spending has declined, which threatens the country's economic growth. The drop in spending is a significant concern for maintaining growth rates.

Rising gas prices linked to the U.S.-Israel strikes on Iran are slowing consumer spending in Ohio, with the Cleveland Fed's Beige Book noting increased fuel costs and inflation are dampening retail sales. Consumer sentiment in May hit its lowest level since at least the 1970s, with lower-income groups and those without college degrees experiencing the strongest declines.

Campbell's reported declining sales and profits but maintained its annual forecast. The company exceeded adjusted profit estimates but fell short of revenue targets due to weak consumer spending and increased tariff costs.

Tate & Lyle has agreed to a £2.7bn takeover by US rival Ingredion. The deal occurs as the UK-based ingredients company faces challenges from weak consumer spending.

Five Below Inc. reported a stock decline despite beating profit expectations, citing concerns over consumer spending due to high oil prices. The company, which operates a store in Albany, New York, is scheduled to release earnings figures on March 20.

Consumer spending in the United States appears strong, but this is primarily driven by higher inflation, which reduces purchasing power. Americans are experiencing diminished value for their money due to rising prices.

French luxury retailer Galeries Lafayette closed its flagship Beijing store after 13 years, reflecting weak consumer spending and shifting shopping habits in China. The closure followed a final clearance sale as staff removed unsold inventory and dismantled displays.

The article highlights that shopping at certain grocery stores can increase weekly expenses by 60%, while others offer significant savings on essential goods. It provides insights into where Americans can reduce costs on everyday items.

The article provides financial tips for saving money when purchasing a car, emphasizing considerations amid high vehicle prices. It highlights strategies to navigate the current automotive market.

Gas prices have reached their highest level since 2022, influencing how Americans allocate their spending. The spike is prompting shifts in consumer behavior as people adjust to increased fuel costs.

AI capital spending is currently offsetting weakness in consumer spending and supporting U.S. economic growth. However, the article warns that when AI capital spending eventually slows, overall economic growth will decline and the stock market could enter bear territory.

Retailers Ross, TJX, and Walmart are being analyzed as indicators of U.S. economic health. The article highlights that consumer spending drives approximately two-thirds of the American economy, making these major retailers key barometers of economic activity.

High gasoline prices at $4.50 per gallon are forcing consumers to reduce discretionary spending, including fewer nights out and increased budget constraints. The article examines the economic impact of elevated fuel costs on consumer behavior and household finances.

Kevin O'Leary criticizes Generation Z's spending habits, specifically targeting expensive lunch purchases around $28. The entrepreneur and television personality urges younger consumers to adopt more frugal financial practices.

Walmart has issued a warning that US shoppers are reducing their spending due to rising gas prices. The retail giant expects customers to continue cutting back in the coming months as fuel costs remain elevated.

Walmart's stock declined after the company issued a disappointing full-year forecast despite strong first-quarter sales. Rising gas prices are reducing consumer spending power and negatively impacting the retailer's profitability and customer purchasing capacity.

New consumer spending data indicates that Americans continue to spend money despite ongoing concerns about inflation. The data suggests consumer resilience in the face of economic headwinds, with analyst Jill Schlesinger providing commentary on the trends.

Hong Kong's retail property market is experiencing gradual recovery as consumer and tourist spending returns. The market shows structural shifts toward experience-driven retail concepts and diversified tenant mixes rather than a return to previous peak rental levels.

A Home Depot rival has closed all 15 of its stores and declared bankruptcy, primarily due to consumers' reluctance to spend. The company's financial collapse highlights challenges in the retail sector amid shifting consumer behavior.

The national average gas price has risen to $4.30 per gallon, the highest in four years, as President Trump claimed prices will drop when the Iran war ends. Ted Rossman, a Bankrate analyst, discusses the resilience of consumer spending amid the conflict.

US GDP growth accelerated to 2% in Q1 2026, driven by AI investment and government spending, but consumer spending is slowing due to the Iran war's impact on energy prices. The previous quarter's growth slowed to 0.5% amid government layoffs, reducing the federal workforce by 11.8% since October 2024.

High Street sales experienced their largest decline in over 40 years, driven by tax hikes and the impact of the Iran war on consumer spending. The drop highlights significant economic strain on retail sectors.