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Economics vocabulary · GDP and Growth

Consumer spending

Meaning in economics, with examples

nounCore term

In economics, consumer spending means: The money that households spend on goods and services, from food and rent to cars and holidays; it is the largest part of GDP in most economies.

In Turkish: tüketici harcamaları, hane halkı tüketimi, özel tüketim

How it is used

Also called household consumption or private consumption, the C in the GDP formula. The news says consumer spending is strong, slowing or holding up. Economists watch retail sales and consumer confidence surveys as early signals.

Example sentences

  1. Consumer spending held up well despite higher interest rates.

  2. Consumer spending accounts for about 60% of GDP, so a drop in confidence can quickly hit growth.

Common collocations

  • strong consumer spending
  • consumer spending slows
  • boost consumer spending
  • consumer confidence
  • household consumption
  • demandThe amount of a good or service that buyers are willing and able to purchase at each possible price during a given period.
  • GDPShort for gross domestic product: the total value of all final goods and services produced within a country in a given period, usually a quarter or a year.
  • economic growthAn increase in the amount of goods and services an economy produces over time, usually measured as the percentage change in real GDP.
  • purchasing powerThe amount of goods and services that a sum of money or an income can buy; it falls when prices rise faster than incomes.

More terms: GDP and Growth

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This page explains English vocabulary for learners. It is not financial advice.