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

Report summary

Spending continued to grow in June, a testament to the economic resilience of the U.S. consumer. Inflation cooled in June, bringing welcome price relief, although consumers remain highly sensitive to prices for most goods and services. Despite good news in spending and inflation, disparities between low-income households and their higher-earning counterparts are growing.

Key Takeaways

  • Consumer spending increased again in June, lifting average total spending to surpass its previous 2023 high.
  • Increases in outlays continue to be driven largely by middle-income and high-income earners, widening the spending gap with the lowest income group.
  • Inflation cooled in June, but consumers remain highly price sensitive to most goods and services.

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]