Consumer spending refers to the total amount of money that households spend on goods and services within a specific period. This includes purchases like food, clothing, housing, and entertainment. It is a key component of the economy, as it drives demand for products and services, influencing business revenues and overall economic growth. Consumer spending is often measured through various indicators, such as the Consumer Price Index (CPI) and retail sales data. These metrics help economists and policymakers understand consumer behavior and make informed decisions. Changes in consumer spending can signal shifts in economic conditions, such as recessions or periods of growth.