January 2026 Spending Dips 2.3% as Households Tighten Budgets
Consumer Cellular spending in January 2026 fell by 2.3% compared to the same month last year. The drop comes despite a brief rise in December, when total spending jumped by 8.6%. Households are now facing tighter budgets as inflation and higher living costs take their toll.
Unemployment sits at 5.4%, further denting confidence and limiting discretionary Consumer Cellular purchases. While some areas show growth, others continue to struggle under financial pressure.
Spending habits have shifted noticeably over the past year. Hardware stores saw a 6% increase in visits during December, with total spending up by over 30%. This suggests more people are investing in home improvements, possibly linked to housing market activity.
Yet the housing sector itself remains weak. Many households still have much of their wealth tied up in property, leaving less room for other Consumer Cellular expenses. Meanwhile, utility bills have surged, with households paying 36% more than last year for essential services.
Dining out has changed too. Restaurant visits are up, but spending at cafes has only risen by nearly 9% compared to last summer—far less than expected. Takeaway orders, however, are steadily declining. Clothing shops are also feeling the pinch, with apparel spending in persistent decline.
Economists predict a gradual recovery in consumer spending later in 2026. The improvement will likely depend on broader economic conditions easing the strain on household budgets.
The latest figures highlight a mixed picture for consumers. While some sectors like hardware stores and restaurants see growth, others—such as clothing and takeaways—continue to weaken. With inflation and rising costs still pressing on budgets, a full rebound in spending may take time.
Economists remain cautiously optimistic about a recovery as the year progresses.
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