U.S. Consumers Show Resilience but Growing Selectivity in Spending
Event summary
- ICSC's Q3 2026 Consumer Economy Report shows 77% of consumers report higher monthly spending, but fewer attribute it to inflation (60% vs. 65% in spring 2026).
- Job security concerns are rising, with 22% of employed consumers citing layoff fears as a reason to seek new employment (up from 10%).
- 40% of consumers shifted to lower-priced brands in the past three months, and 72% expect to become more selective in purchases.
- 82% plan nonessential purchases in the next three months, with 30% planning to increase 'treat yourself' spending.
The big picture
ICSC's report highlights a consumer landscape where spending remains robust but increasingly strategic. While inflation concerns have eased slightly, job market uncertainty and financial tradeoffs are reshaping purchasing behaviors. This dynamic suggests retailers must balance value propositions with quality to retain customers in a more selective market. The findings underscore broader economic trends where consumer resilience coexists with heightened financial caution.
What we're watching
- Spending Selectivity
- How the growing consumer focus on value and deals will impact retail pricing strategies and brand loyalty.
- Job Market Dynamics
- Whether rising job insecurity will further shift consumer spending priorities in the coming quarters.
- Discretionary Spending
- The pace at which consumers maintain nonessential purchases amid financial tradeoffs and essential expense pressures.