consumer expenditure

Consumer expenditure refers to the total amount of money spent by households and individuals on goods and services within a specific period. This includes everyday purchases like food, clothing, and transportation, as well as bigger investments like cars and homes. Consumer spending is a key driver of economic growth, as it reflects people's confidence in the economy; when they spend more, businesses thrive and employment often increases. Monitoring consumer expenditure helps economists understand economic health and trends, making it a vital indicator for policymakers and businesses alike.