State of the US consumer: January 2025
Improving financial sentiment and easing price expectations suggest consumers may be starting to acclimate to higher-price environment
Article
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3-min read
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17 January 2025
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Deloitte Center for Consumer Industry | Deloitte Center for Global Economic Research
Key insights about US consumers from Deloitte’s ConsumerSignals
- Historically, it’s taken roughly two years for consumer confidence to improve following previous inflation waves.1 The recent boost in Deloitte’s financial well-being index (figure 1) and declining inflation concerns (figure 2) might suggest the pattern is playing out again.
- Discretionary spending intentions have improved throughout 2024 but still remain below 2021 levels (figure 3).
- Spending intentions for housing remain elevated but have started to plateau. Meanwhile, spending intentions for a mix of other major purchase categories continue to increase, including leisure travel, clothing, and groceries (figure 4).
Notes: In figure 1, Deloitte’s financial well-being index is measured across six dimensions of financial health: (1) confidence in the ability to meet current financial obligations; (2) comfort with level of savings; (3) income relative to spending; (4) delays in making large purchases; (5) assessment of current personal financial situation compared to last year; and (6) expectations regarding personal financial situation for the year ahead. Higher index values represent stronger financial well-being. Spending intentions represent respondents’ estimated spending for the next four weeks. In figure 3, discretionary categories include leisure travel, restaurants, recreation and entertainment, electronics, clothing, personal care, household goods, education, child care, and home furnishing. Non-discretionary categories include housing and utilities, transportation, groceries, and health care. Spending intention–related index values are represented by a three-month exponential moving average.
Sources: Deloitte ConsumerSignals; US Bureau of Labor Statistics.
Sources: Deloitte ConsumerSignals; US Bureau of Labor Statistics.
Deloitte Insights | www2.deloitte.com/insights
Sources (figures 5-8): Federal Reserve Bank of San Francisco (for pandemic-era savings estimate); US Department of Commerce; US Bureau of Labor Statistics (all sourced through Haver Analytics); Deloitte analysis.
Sources (figures 9-10): US Department of Commerce; US Bureau of Labor Statistics; The Wall Street Journal (all sourced through Haver Analytics); Deloitte analysis.
Sources (figures 9-10): US Department of Commerce; US Bureau of Labor Statistics; The Wall Street Journal (all sourced through Haver Analytics); Deloitte analysis.
Deloitte Insights | www2.deloitte.com/insights
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BY
Anthony Waelter
United States
Stephen Rogers
United States