G10 Consumer Dashboard: July 2026: Spending Starts to Slow

Research evidence excerpt

Economics Research

21 August 2026 | 1:18AM BST

G10 Consumer Dashboard: July 2026: Spending Starts to Slow

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We update our G10 consumer dashboard through July. G10 consumers generally

continue to benefit from healthy balance sheets, but sentiment remains subdued

and spending growth is starting to slow in most DMs amid higher energy prices.

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Household balance sheets remain strong. Household net worth as a share of

income stands close to all-time highs in Japan, Australia, and the US, around P90

in Canada and the Euro area, and around P60 in the UK. Since we last published

the dashboard, real net worth growth was little changed at P90 in Japan, P55 in

Australia and the US, P35 in Canada and P30 in the Euro area and UK.

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Consumer sentiment remains subdued across DMs, especially among

low-income consumers, amid elevated energy prices. In the US, the University of

Michigan’s index of consumer sentiment declined by more than expected in

August to 51.0 (vs. 55.2 in July)—the University of Michigan noted that “notably

large reductions [in sentiment] were seen among older consumers, lower-income

consumers, and those without a college degree. These groups are all particularly

vulnerable to any erosion of purchasing power stemming from inflation.” In

Australia, consumer sentiment improved for a second consecutive month to 88.9

in August (vs. 83.9 in July)—Westpac noted the improvement in sentiment was

“concentrated among people with mortgages, and in responses received after

the RBA decision on 11 August”—but remains 11% below its historical average.

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Real income growth is weak in the US (P10; partly reflecting policy-induced

swings and lower immigration which have exaggerated the slowdown), Canada

Megan Peters

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Goldman Sachs International

(P30) and the Euro area (P40), reflecting the drag from higher energy prices. Real

income growth stands close to its historical median in the UK (P50) and is firmer

in Australia (P60) and Japan (P95), where government price control measures

have limited the impact of the energy shock. In Japan, year-over-year basic wage

growth for all workers accelerated to 3.4% in June (vs. +3.0% in May), and also

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