Financial and Monetary Systems

Here's how inflation is affecting consumer spending in the US

Consumer spending is proving to be resilient in the face of surging inflation in the US, according to latest data.

Consumer spending is proving to be resilient in the face of surging inflation in the US, according to latest data. Image: Unsplash/Frederick Warren

Felix Richter
Data Journalist, Statista
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Financial and Monetary Systems?
The Big Picture
Explore and monitor how United States is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

United States

  • Consumer spending is proving to be resilient in the face of surging inflation in the US, according to latest data.
  • But spending on goods, led by food and beverages, gasoline and motor vehicles, declined for the third consecutive quarter.
  • Meanwhile, services spending increased at an annual rate of 2.8% in Q3.

When the U.S. Bureau of Economic Analysis released its first estimate of third-quarter GDP at the end of last month, consumer spending, by far the largest component of the gross domestic product, once again proved to be surprisingly resilient in the face of surging inflation. According to the BEA, inflation-adjusted personal consumption expenditures increased at an annual rate of 1.4 percent in the third quarter, partially offsetting an 8.5 percent decline in gross private domestic investment. Measured in chained 2012 dollars, real personal consumption expenditures amounted to $14.1 trillion on an annualized basis in Q3 2022, up from $13.9 trillion a year earlier.

While consumers kept spending despite rising prices through the third quarter, there are some warning signs as spending on goods, led by food and beverages, gasoline and motor vehicles, declined for the third consecutive quarter. Meanwhile services spending increased at an annual rate of 2.8 percent in Q3, as Americans spent more on food services and accommodation, health care and transportation compared to the preceding quarter.

Inflation-adjusted personal consumption expenditures increased at an annual rate of 1.4 percent in the third quarter, partially offsetting an 8.5 percent decline in gross private domestic investment.
Inflation-adjusted personal consumption expenditures increased at an annual rate of 1.4 percent in the third quarter, partially offsetting an 8.5 percent decline in gross private domestic investment. Image: Statista.
Discover

Beyond GDP: read the full transcript here

Have you read?
Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:
Financial and Monetary SystemsEconomic Growth
Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

World Bank says global economy stabilizing and other economics stories to read

Joe Myers

June 14, 2024

About Us

Events

Media

Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum