GDP Growth Slows: Is the Consumer Party Over?
February 20, 2026 ¡ Economic Report
Today's report confirms what many analysts feared: GDP growth is slowing as consumer spending shows clear signs of exhaustion. Years of eroded buying powerâhigher prices on a higher base, with wage gains laggingâare finally catching up. Households are pulling back on discretionary spending while essentials keep eating a larger share of paychecks.
What the numbers say
The slowdown is broad-based. Retail has been flat; now broader growth metrics are following. If the consumer party is over, the Fed's next move becomes even more critical. Rate cuts could ease the pressure on mortgages and credit, but they won't instantly restore the purchasing power that inflation has already taken.
See the impact: Use our Inflation Calculator to see how much more you need to earn today to match your past buying power.