Consumer Spending
Consumer spending measures total household expenditure on goods and services within an economy.
Meaning in Practice
Consumer spending includes purchases of durable goods, non-durable goods, and services. It represents a major component of GDP in most economies. The data is typically reported monthly or quarterly.
Why It Matters
Strong consumer spending supports economic growth and business revenues. Weak spending may signal declining confidence or income pressures. Policymakers monitor it to assess demand conditions.
Market Impact
Higher-than-expected spending can boost equities and raise bond yields due to stronger growth prospects. Weak data may increase recession concerns. Currency markets react to shifts in economic momentum.
Example
An increase in household purchases of vehicles and services contributes positively to overall consumer spending figures.