Consumer Spending

Consumer spending refers to the total amount of money that individuals and households spend on goods and services in an economy. It includes purchases such as food, clothing, healthcare, and entertainment. This spending drives economic growth, as it fuels business revenue and influences job creation. When consumers feel confident about their financial situation, they tend to spend more, which can stimulate the economy. Conversely, during downturns, reduced spending can lead to slower economic growth. Tracking consumer spending helps economists and policymakers understand economic trends and make decisions that affect overall economic health.