American consumers’ pockets are tight, but they’re still spending by Moody's

How are American consumers behaving amidst rising prices and an economic slowdown? Despite tight budgets, this data story shows that consumers are using credit cards and tapping into savings accumulated during the early stages of the Covid-19 pandemic to sustain their spending. Consumer spending is a crucial driver of the US economy, accounting for two-thirds of all economic activity.

However, there are concerns about inflation and recession, with the Federal Reserve raising interest rates multiple times to address inflationary pressures. While aggregate figures for consumer spending may appear high, close examination reveals variations based on region, income level, family size, and personal preferences.