U.S. Consumer Spending & Inflation Report: August 2023
Consumer spending retracted slightly in July, following two months of strong growth. Middle-income and high-income earners, who propped up the previous months’ strength, pulled back, while low-income consumers moderately increased their spending. Inflation remained relatively stable from the previous month, with core services inflation remaining the largest obstacle for the Federal Reserve in bringing inflation down to its 2% target.
- Consumer spending retracted slightly in July as middle- and high-income consumers pulled back from their large increases in the previous two months.
- Inflation remained steady from June, with core services continuing to drive price growth.
- Spending on retail categories continued to grow, especially for apparel and home furnishing, led by Gen Z and millennial consumers.
About the authors
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.
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.