In brief
August retail sales in the United States grew thanks to spending from affluent households, especially on travel, dining and entertainment, according to Xinhua. Credit‑card data from American Express and the airline and restaurant sectors confirm the trend, while discount stores saw a boost as lower‑income shoppers flocked to bargains.
Xinhua reported on November 3 that August retail sales in the United States were driven largely by affluent consumers, who continued to spend on travel, restaurants and entertainment despite high inflation, while lower‑income shoppers were scaling back.
American Express, the country’s largest credit‑card issuer, reported revenue of 20.1 billion U.S. dollars, up 9 percent year‑on‑year, in the third quarter, with card spending rising 8 percent to 454 billion dollars. Travel and entertainment purchases grew 10 percent, airline spending climbed 13 percent and restaurant purchases rose 9 percent, figures noted by Forbes in an October 26 article.
Clay Ramsay, a researcher at the Center for International and Security Studies, told Xinhua,
"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 earners were "also spending more in dollar terms by buying the same things at higher prices."
American Airlines reported third‑quarter revenue of 16.3 billion dollars, up 19.3 percent from the previous year, and the airline’s stock performance helped reinforce the financial cushion for wealthy consumers.
In contrast, discount retailers Dollar General and Dollar Tree beat quarterly sales expectations in August, as lower‑income shoppers sought bargains on daily necessities, underscoring a clear income‑based split in consumer behavior.
