Definition
What households spend on goods and services, from groceries and rent to cars and travel.
The story
It makes up about two-thirds of US GDP (gross domestic product), according to the BEA (Bureau of Economic Analysis), which makes it the largest single part of GDP. Two monthly reports that track it are the Census Bureau's retail sales and the BEA's personal income and outlays report.
Why markets watch it
When consumers pull back, the whole economy feels it, which is why spending data moves markets.
See it in the story
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms