U.S. Consumer Spending & Inflation Report: February 2023

Report summary

U.S. consumer spending recovered in January after several months of belt-tightening. Rising incomes and a bump in savings put consumers in a better position to cover expenses and pay down debt last month. But despite these welcome improvements, the uncertain path of inflation remains a threat to purchasing power and consumer demand going forward.

Key Takeaways

  • Consumer spending rebounded in January, snapping a two-month decline.
  • Household finances improved as the gap between incomes and expenses narrowed, though purchasing power remains subdued amid persistent high inflation.
  • Inflation remains a threat as competing supply and demand pressures across categories add uncertainty to the future path of price growth.

About the authors

A headshot photograph of Kayla Bruun
Kayla Bruun
Senior Economist

Kayla Bruun is a senior economist at decision intelligence company Morning Consult, where she analyzes consumer spending, inflation and household finance trends, leveraging the company’s proprietary high-frequency 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.

Follow her on Twitter @KaylaBruun. For speaking opportunities and booking requests, please email [email protected]

A headshot photograph of Sofia Baig
Sofia Baig

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]