People are still spending on technology despite the red flags in July

American consumers continued to open their governorates in July, a new study of Economic Analysis Office It was shown on Friday, which emphasizes the elasticity of the demand for families, even as inflation over the federal reserve goal.

This does not mean that they did not win while doing this.

Federal Federal Influence Service, Personal consumption expenses index0.2 % increased per month and 2.6 % over the previous year.

The basic scale, which comes out of food and energy, is 0.3 % from June and 2.9 % from the previous year, increasing to the top of 2.8 % in June.

Ready -made meals from that? Consumers spend more, but they still painfully high inflation, an issue that primarily affects the working and medium class, which spends more on goods more than services.

So what was the consumers bought?

Mostly larger elements, which include everything from cars to stock. What they did not buy? Things that were optional, such as travel, restaurants or services.

Perhaps this is due to the fact that the services have started to cost a lot.

The respondents, who were included in the University of Michigan, said in a separate study that they expect prices to climb by 4.8 % during the next year. This is compared to 4.5 % in July, with consumer confidence at the lowest level since the beginning of the summer.

Basically, everything sees that its prices rise, from leisure to entertainment, and it is likely to reach higher than anything imported.

This leads to the greatest hidden in both of these two reports: the implementation that is looming on the horizon Difficulties are expensive expensive It was placed by the Trump administration in a commercial war that is mainly with the whole world.

One of the sectors that is likely to reach the most difficult? Technology and anything that needs spare parts from the outside to make technology, including chips, cheaper parts and charging.

Technical spending remained strong this year

However, despite the last inflation and unwanted twin dance, the Americans have spent a lot on technology constantly high throughout 2025.

Total technology spending in the United States expects to reach $ 2.7 trillion in 2025, and the Consumer Technology Association expects a record record of $ 537 billion in consumer technology purchases.

Some of this consumption may be a tariff.

This spending is evident in large and continuous technological purchases, consuming high mobile devices, and increasing subscription services, although some specified costs such as advertising and Internet broadcasting see slight declines as consumers adapt to the economy.

This coincides with the data, as the durable purchases-everything from cars to devices-have been involved in the strongest monthly progress since March, as it increased by 1.9 % after a consecutive decrease.

“The spending on the durable goods has recovered in July, which may reduce some concerns related to tariffs,” Tim Quinlan, Shannon Green. CNN said.

What are the other high points that exist?

There is some good news for consumers, and this depends mainly on employment, how much you have and how much you do.

Personal income increased by 0.4 % in July, with support from stronger wages. But in a worrying sign, income spending out of this report outperformed. This is an indication that economists are closely seen, because it means that families may overwhelm savings to maintain purchases. The savings rate held at 4.4 %.

“Consumers are currently crucifixion, and goods remain present,” Chris Robki, chief economist at FWDBONDS, CNN said. “The war of tariffs did not significantly slow the economy or began to intimidate inflation.”

The frequency of the markets after the report. DOW futures decreased by 0.21 %, while S&P futures decreased by 0.23 % and NASDAQ 100 decreased 0.44 %. The losses were shortened after the release, in line with inflation expectations.

So far we are waiting for definitions

Economists say the biggest risks in the future. With the definitions filled with supply chains, companies gradually pass with higher costs.

“The real blow comes in the next six months,” Heather Long, the chief economist of the Federal Federal Credit Union, CNN said. It warned that the United States would enter the “Stacklation-Lite” stage, where we have a slower growth with high enlargement.

Unlike the year 2022, when families still have a pillow of savings during the epidemic era, today consumers show more resistance to high prices. Companies, which face higher costs, may begin to trim employees to protect margins.

“The Federal Reserve needs a reduction in September and again in December,” Long said. “The threat of inflation is not acute, but the danger of the workers’ demobilization cycle grows.”