August consumer spending tells an interesting story about where people are putting their money.
Up: furniture, home repairs, housing costs, vacations
Down: electronics, appliances, vehicles
People are fixing what they have rather than buying new big-ticket items. The vacation spend is curious—maybe a last hurrah before pulling back, or maybe experiences still winning over stuff.
The drop in vehicles and appliances feels like classic late-cycle behavior. When you're uncertain about the future, you delay the replacements you can delay.
This isn't recessionary yet. But it's cautious. And caution has a way of becoming self-fulfilling if enough people feel it at once.
Up: furniture, home repairs, housing costs, vacations
Down: electronics, appliances, vehicles
People are fixing what they have rather than buying new big-ticket items. The vacation spend is curious—maybe a last hurrah before pulling back, or maybe experiences still winning over stuff.
The drop in vehicles and appliances feels like classic late-cycle behavior. When you're uncertain about the future, you delay the replacements you can delay.
This isn't recessionary yet. But it's cautious. And caution has a way of becoming self-fulfilling if enough people feel it at once.
