NEW YORK — Growth in household spending slowed modestly in August, while consumers expected their overall spending to accelerate during the next year, according to a new survey from the Federal Reserve Bank of New York.
The New York Fed said the median reported year-over-year increase in monthly nominal household spending declined to 4.7% in August. That was down from 4.8% in April and 4.9% in December 2025.
Despite the continued slowdown in reported spending growth, households projected a modest pickup in the coming year. Median expected growth in overall monthly household spending rose to 3.6%, up from 3.4% in April, the New York Fed said.
Expected spending growth declined across most individual expense categories, however, indicating that households anticipate the overall increase may be distributed unevenly.
Median Expectations
The New York Fed reported the following median expectations for spending growth during the next 12 months:
- Food: 5.4%, down 0.2 percentage point.
- Transportation: 4.7%, down 0.7 percentage point.
- Utilities: 4.6%, down 0.2 percentage point.
- Medical care: 4.5%, down 0.4 percentage point.
- Housing: 2.9%, down 0.2 percentage point.
- Clothing: 2.6%, down 0.3 percentage point.
- Recreation: 2.6%, down 0.2 percentage point.
The results suggest consumers continue to expect their largest spending increases in essential categories, particularly food, transportation, utilities and medical care.
Large-purchase activity was mixed during the four months preceding the survey, according to the New York Fed.
- More households reported purchases involving furniture, home repairs or improvements, homes and vacations.
- Fewer households reported buying appliances, electronics and vehicles.
What’s Covered
The large-purchase measure covers purchases made by any household member during the previous four months. Categories include appliances, electronics, furniture, home improvements, vehicles, trips and vacations, and houses or apartments.
The Household Spending Survey is conducted every four months as a rotating module of the New York Fed’s broader Survey of Consumer Expectations. The figures represent nominal spending, meaning they are not adjusted for inflation.
