Posted 1/16/2024, 4:23:00 PM
Americans Slow Spending as Costs Rise; More Focus on Paying Down Debt
- Americans have slowed spending growth; median monthly household spending increase dropped to 5.01% in December from 7.1% a year prior
- Households expect to spend less over the next year; median expected monthly spending growth fell to 3%
- Consumers plan to cut back most on everyday essentials but leave nonessential spending unchanged
- Paying down debt remains a top priority; 38.4% of an unexpected 10% pay raise would go towards debt payments
- Pulling back some on large purchases like furniture, but likelihood of buying a home ticked up