A new consumer economic report from shopping center council ICSC indicates overall spending remains elevated, with 77% of respondents to a July survey reporting higher monthly spending and fewer consumers attributing the increase primarily to inflation.
The ICSC’s new quarterly “Consumer Economy Report” provides a view on forces shaping household spending. The report detailed a modest decrease in relative concern about inflation, noting that among consumers who said they had been spending more money, those citing higher prices as main driver declined from 65% in a spring poll to 60% in the summer survey. Consumers who said inflation will have the biggest impact on their spending fell from 59% to 52%.
Although financial optimism persists, job market concerns have gained somewhat, the former International Council of Shopping Centers maintained, with 55% of survey respondents saying they expect their wherewithal to improve over the next year, a slight increase from 53% in the spring 2026 poll. However, the proportion of respondents saying they felt secure in their current jobs declined from 87% to 84%. At the same time, employed consumers planning to look for another job rose from 30% to 35%. Concern about layoffs or job instability as a reason for moving jobs more than doubled from 10% to 22%.
On the shopping front, 61% of respondents said brand names mean less to them today than in the past. Four in 10 consumers said they had switched to lower-priced labels or retailers during the three months prior and 38% expect to continue shifting to based on price during the next three months. As they shop, 46% of respondents said they actively look for deals and discounts before making purchases, and 72% expect to become more selective in purchasing through the autumn.
Consumers continue to make room for discretionary purchases if what they might consider buying offers clear value, utility or personal reward. When considering the three months ahead, 82% of consumers said they anticipate making non-essential purchases. More consumers, from 24% in the spring to 30% in the summer, expected to spend money treating themselves.
Discretionary purchase motivators include value, a prompt for 27%, convenience (24%) and enjoyment (23%). For 19% of consumers, the intention is to make fewer but higher-quality purchases, according to the survey.
Although 77% said they are currently keeping up with monthly essential expenses, 43% of consumers acknowledged reducing non-essential spending to make ends meet . Some 20% are using savings to help cover expenses, and 20% are paying only minimum amounts on some debts. Some 54% said an increase in essential expenses of $249 per month or less would force them to reduce discretionary spending, and 19% said any additional uptick in essential costs would require immediate cutbacks.
“Consumers continue to show remarkable resilience, continuing to spend and remaining broadly optimistic about their financial futures,” said ICSC President and CEO Tom McGee. “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.”
