US Real Consumer Spending Stalls in July

Inflation-adjusted US personal spending was unchanged month-on-month in July 2026, following a 0.4% increase in June. Goods spending declined 0.6%, reversing a 0.6% rise in the previous month, driven by weaker spending on gasoline and other energy goods (-0.1% vs 2.5%), motor vehicles and parts (-1.6% vs 1.2%), and recreational goods and vehicles (-2.9% vs 0.1%). Meanwhile, services spending rose 0.3%, although slowing from a 0.4% increase in June, as spending growth moderated in healthcare (0.4% vs 0.6%), transportation (0.6% vs 0.8%), recreation (0.1% vs 1.3%), and financial services and insurance (0.1% vs 0.7%). Spending on housing and utilities services edged up 0.1%, following a flat reading in June.

Inflation-adjusted US personal spending rose 0.4% month-over-month in June 2026, matching May's pace. Goods spending accelerated to 0.7% from 0.6%, driven by stronger gains in motor vehicles and parts (2.2% vs. 1.9%), gasoline and other energy goods (0.7% vs. -3.3%), and clothing and footwear (1.3% vs. 0.9%). Meanwhile, services spending increased 0.3%, unchanged from May. Faster growth in recreation services (0.9% vs. 0.2%) and financial services and insurance (0.6% vs. 0.4%) offset slower gains in food services and accommodations (0.3% vs. 0.9%) and housing and utilities (0.0% vs. 0.2%). Spending on health care and transportation services remained steady at 0.3% each.

Inflation-adjusted US personal spending rose 0.3% month-over-month in May 2026, after a revised flat reading in April. Spending on goods increased 0.5%, rebounding from a 0.4% fall in April, due to motor vehicles and parts (0.9% vs -3.8% in April), recreational goods and vehicles (0.8% vs -0.3%), food and beverages (0.2% vs -0.1%), and clothing and footwear (0.4% vs -0.4%). Meanwhile, spending on services rose 0.2%, the same as in the previous month. Spending rose for housing and utilities (0.3% vs -0.1%), health care (0.2% vs 0.1%), recreation services (0.3% vs 0.4%), and financial services and insurance (0.3% vs 0.2%), while it declined for transportation services (-0.3% vs -0.7%), and food services and accommodations (-0.3% vs 0.3%).