Economics
U.S. Consumer Spending & Household Finances: High Earners Spend While Lower Earners Save
Report summary
Consumer spending decreased modestly in March from the previous month after adjusting for inflation and seasonality. However, average spending on most goods and services is higher than it was the same month last year, in large part driven by high-income adults who continue to be particularly likely to splurge on discretionary services like vacations. At the same time, middle and low earners have been more moderate in their spending, opting to save and pay down debts at higher rates.
Key Takeaways
- Spending decreased modestly from the previous month but was higher than a year ago, driven primarily by high-income earners.
- Low- and middle-income earners prioritize saving and paying down debts while exercising more frugal spending behavior.
- Most U.S. adults filed their taxes before the April 15th deadline, and those with returns are spending it on smaller ticket items.
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About the authors
Sofia Baig is an economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency data. Previously, she worked for the Federal Reserve Board as a quantitative analyst, focusing on topics related to monetary policy and bank stress testing. She received a bachelor’s degree in economics from Pomona College and a master’s degree in mathematics and statistics from Georgetown University.
Follow her on Twitter @_SofiaBaig_For speaking opportunities and booking requests, please email [email protected]
Kayla Bruun is the lead economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency economic data. Prior to joining Morning Consult, Kayla was a key member of the corporate strategy team at telecommunications company SES, where she produced market intelligence and industry analysis of mobility markets.
Kayla also served as an economist at IHS Markit, where she covered global services industries, provided price forecasts, produced written analyses and served as a subject-matter expert on client-facing consulting projects. Kayla earned a bachelor’s degree in economics from Emory University and an MBA with a certificate in nonmarket strategy from Georgetown University’s McDonough School of Business. For speaking opportunities and booking requests, please email [email protected]
