Definition of Consumer spending:
Good and services bought by households in the satisfaction of their needs and wants. It includes non-durables such as food, semi-durables such as clothing, and durables such as refrigerators.
Consumer spending is the total money spent on final goods and services by individuals and households for personal use and enjoyment in an economy. Contemporary measures of consumer spending include all private purchases of durable goods, nondurable goods, and services. Consumer spending can be regarded as complementary to personal saving, investment spending, and production in an economy.
Consumption of final goods (i.e., not capital goods or investment assets) is the result of and ultimate motivation for economic activity. This is because all goods that are consumed must first be produced. Consumer spending is the demand side of "supply and demand"; production is the supply. Consumer's decide whether to spend their income now or in the future. Consumer spending typically only refers to spending on consumption in the present. Income retained for future spending is called saving, which also funds investment in the production of future consumer goods.
How to use Consumer spending in a sentence?
- In the United States, consumer spending has rose considerably after an increase in the economy; families are able to fulfill such needs with less financial pressure.
- You need to factor in what the consumer spending numbers are when you are trying to figure out how much to charge.
- I realized that the consumer spending had increased a lot and our revenue was increasing slowly, but surely for us.
- Investors, businesses, and policymakers closely follow published statistics and reports on consumer spending in order to help forecast and plan investment and policy decisions.
- Consumer spending is a key driving force in the economy and a critical concept in economic theory.
- Consumer spending is all spending on final goods and services for current personal and household use.
Meaning of Consumer spending & Consumer spending Definition