Americans Are Spending, and Not Just on Necessities

When food prices began rising rapidly at the end of last year, American households spent more on groceries. When gas prices spiked this spring, they spent more on fuel.

After all, what choice did they have?

But with inflation cooling — at least for now — and the moribund labor market showing some newfound life, there are hints that more Americans are taking the opportunity to spend more on what they want, not just what they have to buy.

Retail sales data from the Census Bureau on Thursday provided the latest evidence. U.S. retail and food services sales were up a solid 0.2 percent in June, a slight deceleration from April and May numbers, but it builds upon a steadying trend. Spending in discretionary categories like furniture stores, electronics retailers and restaurants all rose.

For the second quarter as a whole, sales were up 6.4 percent from a year earlier, before adjusting for inflation.

Article source: https://www.nytimes.com/2026/07/16/business/consumers-spending-retail-sales.html