State of the US Consumer: April–May 2026
Inflation expectations reignite, but consumers are still spending
Article
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3-min read
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08 May 2026
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Deloitte Consumer Industry Center
Key insights about US consumers from Deloitte’s ConsumerSignals
- Deloitte's financial well-being index retreated to 101.1 in March, offsetting most of the gains recorded in February. This pullback was driven by weakening consumer expectations about future finances rather than present-day financial strain, suggesting consumers are reacting more to a cloudier outlook, than a worsening reality (figure 1).
- Inflation expectations spiked in March. The percentage of respondents expecting higher gas prices surged to 82%—up 35 points month on month—the highest in three years. Meanwhile, grocery-price expectations jumped 9 points to 74%, suggesting consumers see price pressures extending beyond the pump (figure 2).
- After a steep drop in March, discretionary spending intentions partially recovered in April, though they remain well below the stronger levels seen in January. Nondiscretionary spending intent has eased for three consecutive months from its January peak, suggesting the late-2025 momentum in essentials spending may be leveling off now (figure 3).
- Several nondiscretionary categories, including housing and health care fell or remained flat. Groceries were an exception, rebounding in April after a dip in March. All nondiscretionary categories remain above levels recorded last year, but the broad-based uptrend that characterized the second half of 2025 is showing signs of moderating (figure 4).
BY
Stephen Rogers
United States
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