The Conference Board’s May 2026 survey found consumers are specifically reducing expenditure on clothing, footwear, hobby items and games as inflation persists.
Two-thirds of respondents reported cutting spending in those discretionary categories compared with prior months. Households prioritized essentials such as groceries, housing and utilities amid elevated price levels.
Economists said the pattern suggests consumers are trading down rather than stopping purchases entirely in affected categories. Retailers facing inventory buildup may accelerate promotions to stimulate demand.
The survey aligns with broader indicators showing cautious sentiment despite stable employment in many sectors. Central bankers watch consumer behavior for signals about future inflation trajectories.
Analysts noted regional variation, with higher-cost metro areas showing sharper cutbacks in apparel and leisure goods. Policy debates continue over whether wage growth will restore discretionary spending later in the year.
The Conference Board May 2026 survey reported two-thirds of consumers cutting spending on clothing, footwear, hobby items and games as inflation persists. Households prioritize essentials while discretionary purchases decline.
Retail analysts said discount chains may gain share as consumers trade down within discretionary categories. Federal Reserve watchers parsed the survey for signals about slowing goods demand.
Economists noted the survey predates possible summer spending shifts tied to school holidays.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.conference-board.org/topics/consumer-confidence/