Read our full analysis for a more in-depth look at these trends.
Regional Roundup: Shifts in spending
Consumers generally remain resilient, but regional labor market and spending patterns are far from uniform.
July 2026
Key takeaways
- The Northeast overtook the West as the fastest-growing region for consumer spending in June, largely because of strong spending growth for groceries, gasoline and utilities. By contrast, discretionary spending growth outpaced necessity spending in the West and South, highlighting regional differences in how consumers are allocating their budgets.
- While gasoline spending rose across all regions, grocery spending growth was positive only in the Northeast and declined in the South, potentially reflecting trade-offs households are making to manage higher fuel costs. Even so, gasoline, grocery and housing expenses as a share of income have generally remained stable or declined over the past year across most regions.
- Looking ahead, regional spending trends are likely to remain closely tied to labor market conditions. While the Northeast led on spending growth in June, recent labor market data suggests the South could narrow the gap if increased job switching translates into stronger earnings growth.
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