Consumer Health Check

U.S. consumer spending remains resilient at 5.3% YoY growth as fiscal support from tax refunds and the OBBBA offsets high gasoline prices. However, with pandemic-era savings exhausted, spending is expected to moderate in late 2026 as stimulus effects fade.

Key Takeaways

• 1.U.S. consumer spending accelerated in April 2024 to 5.3% YoY, despite high gasoline prices caused by the Iran conflict.
• 2.Fiscal support from the 'One Big Beautiful Bill Act' (OBBBA) and an 11% increase in tax refunds are currently offsetting the drag of higher fuel costs.
• 3.The gap between lower-income and upper-income spending is narrowing as lower-income household trends improve significantly.

Table of Contents

• Consumers still have some gas left in the tank
• KEY FACTS
• No slowdown in consumer spending...
• ... as ongoing fiscal support cushions the blow from higher gas prices
• Reports of the demise of the lower-income consumer have been greatly exaggerated
• How long can spending remain resilient?
• Digital discretionary spending moves beyond streaming
• Key Charts and Figures:
• Methodology
• Disclosures

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial