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Consumer Spending Grows 4.6% Amid Income Disparities

1/23/2025

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Summary

Story summary

Consumer spending grew by 4.6% in December 2024, a slight decrease from 5% in August.
Large purchases among low-income households dropped significantly, with only 37% participating last quarter.
High-income households are increasing spending on large items, especially vacations and home improvements.
Essential spending is projected to rise by 4.1%, while nonessential spending is expected to increase by just 1.5%.

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Story summary

Consumer spending grew by 4.6% in December 2024, a slight decrease from 5% in August.
Large purchases among low-income households dropped significantly, with only 37% participating last quarter.
High-income households are increasing spending on large items, especially vacations and home improvements.
Essential spending is projected to rise by 4.1%, while nonessential spending is expected to increase by just 1.5%.