Housing and food accounted for 46.9% of average U.S. household spending in 2025, the highest share in 15 years. Housing expenditures rose 5.8%, while food spending increased 4.6%, both outpacing inflation of 2.6%. Lower-income households earning less than about $60,000 spent more than their pretax income, increasing financial pressure across the country. These strains continued into 2026: the University of Michigan’s consumer sentiment index stood at 48.0 in October, and nearly four in five Americans were pessimistic about economic conditions improving.
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