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SHAREHOLDERS' DIGEST
Financial news and analysis digest for shareholders · Since 2026
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December 15, 2025 • Economy • Consumer Spending • 7 mins read
U.S. Consumer Spending Softens as Inflation Pressures Persist
U.S. consumer spending moderated in recent weeks as households faced continued pressure from elevated prices and higher interest rates, signaling a gradual slowdown in economic momentum heading into the final weeks of the year.
Consumer spending showed signs of slowing as persistent inflation and higher borrowing costs weighed on household budgets.
According to recent economic data, retail and discretionary spending slowed compared with earlier in 2025, particularly in categories such as durable goods, home-related purchases, and big-ticket items. Services spending, including travel and dining, remained more resilient but also showed signs of leveling off.
Households appear to be prioritizing essential spending while delaying or scaling back non-essential purchases, a trend that could weigh on economic growth in early 2026.
Economic Analysis: Consumer Behavior and Macro Implications
"Consumer spending accounts for roughly two-thirds of U.S. economic activity, making its trajectory a key indicator for overall growth. A sustained slowdown could ease inflation pressures but also raise concerns about weaker demand."
— Economic Analyst Perspective
Broader Economic Impact and Sector Analysis
Economic Stability Assessment
Despite the slowdown, economists emphasize that the U.S. economy remains on stable footing. Household balance sheets are healthier than in past downturns, and unemployment remains low by historical standards.
Growth Outlook
Most forecasts point to moderate economic growth rather than recession, with risks tied primarily to global conditions, energy prices, and financial market volatility.
Economic Transition Phase
The current economic landscape represents a transition from the rapid recovery phase to more sustainable growth. While certain sectors are experiencing headwinds, others continue to show resilience, creating a mixed but manageable economic environment.
Analysts expect additional clarity from upcoming inflation and consumer confidence data later this month. The combination of employment trends, price stability measures, and consumer behavior will provide a more complete picture of the economic trajectory heading into 2026.
"The moderation in consumer spending we're observing is consistent with a healthy economic adjustment. After years of strong post-pandemic consumption growth, some cooling is both expected and necessary to bring demand back into balance with supply without triggering a broader downturn."
— Chief Economist, Morgan Stanley
Key Economic Indicators and Future Monitoring
Key economic indicators to watch include:
- Consumer Confidence: Measures of consumer sentiment and future spending intentions
- Retail Sales: Monthly data on consumer purchases across categories
- Personal Consumption Expenditures: Broad measure of consumer spending
- Housing Market Trends: Home sales, prices, and construction activity
- Inflation Metrics: CPI and PCE inflation data
- Credit Conditions: Consumer credit and borrowing trends
These indicators will provide ongoing insights into the health of the U.S. consumer and broader economic conditions.
Related Reading: Learn more about U.S. job growth trends and 2026 inflation outlook.
Economist and policy analyst specializing in macroeconomic trends and global economic indicators.
Covers inflation, employment data, central bank policy, and their impact on financial markets and consumers.
Credentials: PhD in Economics, former Federal Reserve analyst.
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Shareholders' Digest is an independent financial news and analysis publication dedicated to shareholders, investors, and market participants. We deliver timely coverage of global markets, corporate earnings, economic trends, and governance issues that shape long-term investment outcomes.
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