# Fed Data Shows Consumers Shift Spending Toward Homes and Vacations

> Consumer spending shifts toward homes and vacations as savings gaps widen
- Title: Fed Data Shows Consumers Shift Spending Toward Homes and…
- Summary: Consumer spending shifts toward homes and vacations as savings gaps widen Lower-paid workers drive $1.7 trillion in spending but face financial strain
- Keywords: fed, household spending, vacations, homes, savings, wage to wallet index, new york fed, consumer spending, labor economy, credit cards, financial pressure, paycheck to paycheck
- Source: Pymnts — https://pymnts.com/economy/2026/fed-data-show-consumers-shift-spending-toward-homes-and-vacations
- Author: PYMNTS
- Published: 2026-09-21T18:03:52+00:00
- Read time: 1 min
- Topics: fed, household spending, vacations, homes, savings, wage to wallet index, new york fed, consumer spending, labor economy, credit cards, financial pressure, paycheck to paycheck
## Spending Growth Slows
August household spending growth slowed to 4.7% year-over-year from 4.9% in December 2025
## Spending Mix Shifts
More households bought furniture, home repairs, homes and vacations in August than in April
## Expectations Rise
Households expect total spending to grow 3.6% next year, up from 3.4% in April
## Savings Gaps
81% of paycheck-to-paycheck households who recently struggled had previously paid bills without difficulty
## Savings Buffer
62% of financially improved paycheck-to-paycheck households had more than three months savings
## Wage to Wallet
60 million workers earning $25 or less per hour generate $1.7 trillion in annual spending
## Credit Strain
35% of struggling households carry credit card balances for emergencies
## Key takeaway

Lower-paid workers drive $1.7 trillion in spending but face financial strain