ICSC: Shoppers balance spending habits amid economic concerns
Consumers are continuing to actively spend while taking a more cautious approach.
That’s according to the new ICSC Consumer Economy Report, which found that more than three-quarters (77%) of consumers report higher monthly spending, but fewer consumers attribute that increase primarily to inflation. Consumers who say inflation will have the biggest impact on spending going forward fell from 59% in the spring to 52% in July.
A large majority (82%) of those surveyed expect to make nonessential purchases during the next three months, and those who plan to increase "treat yourself" purchases rose from 24% to 30%.
ICSC found that the top motivations for discretionary purchases include value (27%), convenience (24%) and enjoyment (23%). Notably, nearly one-in-five (19%) consumers expect to buy fewer but higher-quality products in the coming months.
“Consumers continue to show remarkable resilience, continuing to spend and remaining broadly optimistic about their financial futures,” said Tom McGee, president and CEO of ICSC. “Yet ICSC’s latest data shows that many households are making increasingly deliberate tradeoffs to manage their budgets.”
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A majority (77%) of consumers are currently keeping up with monthly essential expenses, and among them, 43% have reduced nonessential spending to make ends meet. Twenty percent of those surveyed are using savings to help cover expenses, while the same amount (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%) consumers say any additional increase in essential costs would require immediate cutbacks.
Despite the ongoing financial pressure, more than half (55%) of those surveyed expect their financial situation to improve over the next year, a slight increase from 53% earlier this year. 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%.
“Consumers are placing greater emphasis on value, becoming more selective about where they spend and keeping a closer eye on their financial flexibility,” McGee added. “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."
For its report, ICSC conducted consumer surveys online in summer 2026 from July 29 to July 31, with a demographically representative U.S. sample of 1,003 respondents, and in spring 2026 from May 1-3, with a demographically representative U.S. sample of 1,009 respondents.
The full report can be found here.
