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Americans Are Spending, and Not Just on Necessities
The New York Times • • business
Key Points:
- U.S. retail and food services sales increased by 0.2 percent in June, continuing a trend of steady spending growth, particularly in discretionary categories like furniture, electronics, and restaurants.
- For the second quarter, retail sales rose 6.4 percent compared to the previous year before inflation adjustments, indicating stronger consumer activity.
- Wealthy Americans have maintained robust spending on luxury items and experiences, supported by rising stock portfolios despite economic challenges such as high interest rates and tariffs.
- Many middle- and lower-income households have struggled with rising prices and slow wage growth, leading to increased debt and reduced savings, especially after recent spikes in gas prices.
- The recent cooling of inflation and improvements in the labor market suggest more Americans may now be able to spend on non-essential items rather than just necessities.
