Research Topics:

Consumer Research

Industry/Market Focus:

Household Products/Services

Content Type:

Glossary

Consumer Expenditure Definition

The amount consumers spend on goods and services.

Consumer expenditure is the amount of money spent by individuals or households on goods and services within a specific period of time. This figure is useful for marketing professionals and companies because it tracks how consumers spend their income toward various products and services. Basically, it provides a glimpse into consumer behavior and spending habits. It allows businesses to identify what products or services are in demand, understand shifts in spending preferences and predict future market trends.

Who relies on consumer expenditure?

Businesses, marketing professionals, economists, policymakers and financial analysts use consumer expenditure data to pinpoint spending trends, target consumer markets and adjust marketing campaigns. Economists and policymakers study the numbers to diagnose the health of the economy and to make decisions on monetary policy. Financial analysts use the data to judge company performance.

Why should I care about consumer expenditure?

Consumer expenditure data provides insights into consumer preferences, helps target growth opportunities and assists in optimizing business resources. This data also assists companies to make decisions about marketing campaigns, developing new products and staying competitive in a dynamic market landscape.