Consumer spending behavior has changed significantly in recent years. Economists struggled to predict this shift during the late 1980s boom, as popular models failed to forecast the growth in real consumer spending. Savings rates hit record lows, and spending growth peaked at 7% annually in 1988. However, there has been a sharp decline in consumer spending and confidence since then, leading to a rapid increase in savings rates. This paper aims to understand the recent changes in consumer spending and explain the recent decrease in spending.