In brief
U.S. retail sales grew in August, largely driven by affluent consumers who remain unshaken by high inflation. Credit‑card data spots higher spending from wealthy households, while discount retailers see larger gains as bargain‑hunters buy more daily necessities. Lower‑income Americans are still paying higher prices but are trimming discretionary spending.
Washington, Nov. 3 – In the United States, retail sales rose in August, but the growth was driven mostly by affluent households that continue to spend on travel, dining and entertainment, according to data and analysts quoted by Xinhua.
Clay Ramsay, a researcher at the Center for International and Security Studies at the University of Maryland, told Xinhua that “It’s a fact that overall consumer spending is being fueled by the one‑fifth or so who are best off.” He added that lower‑income Americans are spending more in dollar terms by buying the same goods at higher prices.
“It’s a fact that overall consumer spending is being fueled by the one‑fifth or so who are best off.”
American Express reported a surge in revenue to 20.1 billion U.S. dollars, up 9 percent year‑on‑year in the third quarter, and a rise in card spending of 8 percent to 454 billion dollars. Travel and entertainment spending grew 10 percent, airline purchases climbed 13 percent and restaurant purchases rose 9 percent, data noted by forbes.com.
American Airlines also reported third‑quarter revenue of 16.3 billion dollars, up 19.3 percent from the same period a year earlier, underscoring demand for discretionary activities such as travel.
While affluent consumers continue to spend heavily, lower‑income households are buying at higher prices but scaling back discretionary purchases. Credit‑card use has increased among lower earners who use plastic to survive, whereas wealthy households use credit for travel and entertainment, according to credit‑card data and expert analysis.
Discount retailers such as Dollar General and Dollar Tree beat quarterly sales expectations in August as lower‑income shoppers sought bargains on daily necessities, reflecting a shift toward less expensive options as wage growth stalls, experts noted.
Other indicators reinforce the income‑based split. Inflation‑adjusted consumer spending in the U.S. increased annually by about 4 percent between 2021 and 2025, while real disposable income grew by only 1.6 percent per year, according to a recently cited study on U.S. wealth effect and consumer spending.
Even as the stock market remains near an all‑time high, providing a financial cushion for affluent Americans, lower‑income Americans face a higher cost of living. The surge in gas prices has also contributed to higher per‑gallon spending by drivers across income groups.
Overall, the data suggest that retail growth in the United States is increasingly uneven, with wealthy consumers sustaining the momentum while lower‑income households curb discretionary spending and turn to discount alternatives.
