Economics
U.S. Consumer Spending & Inflation Report: October 2022
Report summary
As inflation continues to outpace incomes, consumer wallets are being pinched from all sides: Real incomes have fallen, the savings rate has tanked, and consumers are having to rely more heavily on credit to afford monthly expenses. As the holiday shopping season approaches, consumers’ capacity and willingness to splurge is looking more and more precarious.
Key Takeaways
- Real consumer spending declined in September as purchasing power slipped for a second consecutive month.
- Services purchases are increasingly vulnerable to affordability challenges as rising prices for these categories discourage buyers.
- Housing price growth, a critical driver of core inflation, is showing signs of slowing as rising mortgage rates discourage homebuying, but it may take time for this development to be reflected in the Consumer Price Index.
About the authors
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]
Scott Brave previously worked at Morning Consult in economic analysis.
