US consumers reduce spending on goods as prices rise sharply

10 articles · Updated · The Wall Street Journal · Apr 28

Between December and February, inflation-adjusted spending on clothing fell 7%, furniture 5%, and sporting equipment 6%, while prices for these goods rose 9%, 7%, and 16% respectively.
Consumers are prioritizing spending on services and experiences like travel and healthcare, even as prices in those sectors also increase. Higher tax refunds are currently helping offset some of the impact from rising costs.
Analysts note that, unlike the Covid era, current price hikes are driven by tariffs and supply-chain pressures rather than surging demand, leading to increased resistance to further price increases among consumers.

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