Economics
U.S. Consumer Spending & Household Finances: December 2023
Report summary
The average U.S. consumer spent less in November, continuing a softening trend on the heels of a summer of splurging. Consumers’ appetite for discretionary spending is starting to wane, especially among Gen Z adults. While inflation-adjusted incomes are higher than their year-ago levels for all income groups, low-income consumers face higher debt burdens.
Key Takeaways
- Following a slight increase in October, consumer spending declined in November, continuing a trend of softening since the height of spending this summer.
- After months of prioritizing spending on experiences, consumers — especially Gen Zers — are pulling back spending on services.
- Real incomes are higher than their year-ago levels, but certain groups, including low-income earners and parents, are becoming more reliant on debt.
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]
