Compared to March 2025, during the month of April US consumers earned a bit more, spent a bit more, saved more than in recent months, and spent less on a wide array of durable goods. Despite still robust demand (see first chart below) — and uncertainties related to supply — the year-over-year PCE price index was up only 2.1 percent overall and 2.5 percent excluding food and energy.
Several observers interpreted these results as related to tariff turmoil. For example, Reuters reported, “Spending was supported by outlays on services, mostly housing and utilities, healthcare as well as restaurants, hotels and motel stays. But goods spending softened amid cutbacks on purchases of motor vehicles and parts, clothing and footwear as well as recreational goods and vehicles. Pre-emptive buying of goods ahead of Trump’s sweeping import tariffs helped to push spending higher in the prior month.”
According to the Bureau of Economic Analysis in April 2017 US consumers expended $11,752.7 billion on goods and services. Adjusting for inflation and calculated in constant 2017 dollars, in April 2025 US consumers expended $16,173.4 billion on goods and services. (See table below.) This is just about one-fifth more (again, inflation adjusted).
Given this significant increase in spending, pre-pandemic versus post-pandemic, and tariff-related uncertainties, I would not have been surprised to see a shift in the mix of goods and services being consumed. Instead, the available data demonstrates remarkable continuity. In the table below the US consumer’s shopping cart for durable goods, non-durable goods, and services is reported and compares 2017 versus 2025. Very different moments in time, very similar spending habits.
