Consumer

Consumer spending accounts for roughly 70% of U.S. GDP, making consumer behavior the single most important driver of economic growth. These indicators track how consumers feel about the economy, how much they are spending, how much they are saving, and how much they are borrowing. Currently, key indicators in this category include Consumer Sentiment Index at 56.6, Personal Savings Rate at 4.50%, Retail Sales at $738,366M. (Source: FRED)

Key Relationships

Consumer sentiment measures how people feel about the economy, while retail sales and consumer credit show how they are actually behaving. The personal savings rate bridges the gap. When sentiment diverges from actual spending, it often signals a turning point in consumer behavior. (Source: University of Michigan, Federal Reserve, BEA via FRED)

How This Category Connects to Others

Consumer spending accounts for roughly 70% of GDP, making this category central to the Growth category. Consumer behavior responds to Employment conditions (job security drives spending confidence) and is constrained by Rates (higher borrowing costs reduce credit-funded purchases). Inflation in the Prices category directly erodes purchasing power, affecting how far consumer dollars stretch. (Source: FRED)