Consumer spending, also known as consumption expenditure, refers to the total amount of money spent by households and individuals on goods and services within a given period of time, typically measured in a monthly or yearly context. This spending encompasses various categories including necessities like food, clothing, and housing, as well as discretionary items such as entertainment, travel, and luxury goods. Consumer spending is a key component of overall economic activity and serves as a primary driver of demand in an economy, influencing business investment and economic growth. It is closely monitored by economists and policymakers through indicators such as retail sales data and consumer confidence indexes, as changes in consumer spending can reflect shifts in economic conditions, consumer confidence, and purchasing power.
### Consumers Shift Spending Habits as the New Year Approaches As 2025 approaches, recent research indicates a dramatic change in consumer spending behavior. With inflation still affecting budgets, many people…