New ICSC Report: Consumer Spending Remains Active as Households Make Sharper Tradeoffs

MEDIA ALERT

New ICSC Report: Consumer Spending Remains Active as Households Make Sharper Tradeoffs

ATTN: Retail/Real Estate/Business/Economic Editors and Reporters

WHO: ICSC

WHAT: The ICSC Consumer Economy Report is a new quarterly look at the forces shaping household spending and what they mean for the consumer economy. Combining ICSC’s proprietary consumer research with the latest economic data, the report tracks how Americans are feeling, spending and adapting as conditions change.

WHEN: ICSC conducted consumer surveys online in summer 2026 from July 29, 2026 to July 31, 2026, with a demographically representative U.S. sample of 1,003 respondents, and in spring 2026 from May 1, 2026 to May 3, 2026, with a demographically representative U.S. sample of 1,009 respondents.

QUOTE: “Consumers continue to show remarkable resilience, continuing to spend and remaining broadly optimistic about their financial futures. Yet ICSC’s latest data shows that many households are making increasingly deliberate tradeoffs to manage their budgets. Consumers are placing greater emphasis on value, becoming more selective about where they spend and keeping a closer eye on their financial flexibility. At the same time, growing concern about job security suggests that income stability may be emerging as a bigger consideration than inflation alone. The result is a consumer who remains engaged and willing to spend, but is making purchasing decisions more carefully than ever."

- Tom McGee, President & CEO, ICSC  

RESULTS:

The ICSC Consumer Economy Report reveals a contrasting consumer landscape. Americans remain optimistic about their financial outlook and continue to make discretionary purchases, yet they are increasingly selective, value-conscious and attentive to potential financial risks. Inflation is less of a concern than earlier this year, but growing job market uncertainty and limited financial cushions continue to shape spending decisions. The findings suggest consumers are not pulling back from spending, but they are becoming more deliberate about every purchase.

Key findings from the report and consumer surveys include:

1. Inflation is losing its grip on consumer behavior. While inflation remains the leading factor influencing spending decisions, consumers are less focused on rising prices than they were earlier this year.

• Among consumers whose spending increased, those citing higher prices declined from 65% in spring 2026 to 60% in summer 2026.
• Consumers who say inflation will have the biggest impact on spending fell from 59% to 52%.
• Overall spending remains elevated, with 77% reporting higher monthly spending, but fewer consumers attribute that increase primarily to inflation.

2. Financial optimism persists, but job market concerns are growing. Consumers remain generally positive about their financial situations, but labor market anxiety is becoming more apparent.

• Consumers’ financial outlook remained resilient, with 55% expecting their financial situation to improve over the next year, a slight increase from 53% in spring 2026.
• Job security shows signs of moving in the opposite direction, with consumers who feel secure in their current job declining from 87% to 84%.
• Employed consumers planning to look for another job rose from 30% to 35%.
• Concern about layoffs or job instability as a reason for seeking new employment more than doubled, from 10% to 22%.

3. Loyalty is becoming more fragile. Consumers have not stopped spending, but they are more willing to switch brands, retailers and products to find the best deal.

• 61% say brand names mean less to them today than in the past.
• 40% shifted to lower-priced brands or retailers in the past three months and 38% expect to continue shifting to lower-priced brands and retailers over the next three months.
• 46% actively look for deals and discounts before making purchases.
• 72% expect to become more selective in the purchases they make over the next three months.

4. Consumers continue to make discretionary purchases. Despite ongoing financial pressures, consumers continue to make room for nonessential purchases, provided they offer clear value, utility or personal reward.

• 82% expect to make nonessential purchases during the next three months.
• Those who plan to increase "treat yourself" purchases rose from 24% in spring 2026 to 30% in summer 2026.
• Top motivations for discretionary purchases include value (27%), convenience (24%), enjoyment (23%).
• Nearly one in five consumers (19%) expect to buy fewer but higher-quality products.

5. Many households have little margin for error. Some consumers are relying on financial tradeoffs to keep up with essential expenses, leaving little room to absorb additional cost increases.

• 77% of consumers are currently keeping up with monthly essential expenses.
• Among them, 43% have reduced nonessential spending to make ends meet.
• 20% are using savings to help cover expenses, while 20% are paying only minimum amounts on some debts.
• More than half (54%) say an increase in essential expenses of $249 per month or less would force them to reduce discretionary spending.
• Nearly one in five (19%) say any additional increase in essential costs would require immediate cutbacks.

Find the full ICSC Consumer Economy Report here.

About ICSC

ICSC is the preeminent membership organization serving the commercial real estate and retail industries. The organization promotes and elevates the marketplaces and spaces where people shop, dine, work, play and gather as foundational and vital ingredients of communities and economies. ICSC produces experiences that create connections and catalyze deals; aggressively advocates to shape public policy; develops high-impact marketing and public relations that influence opinion; provides an enduring platform for professional success; and creates forward-thinking content with actionable insights–all of which drive industry innovation and growth. For more information, please visit www.ICSC.com.