In brief
U.S. retail sales rose in August, driven largely by affluent consumers who continued to spend on travel, dining and entertainment despite soaring prices. Credit‑card data from American Express and airline revenue figures underscore this trend, while discount retailers saw gains as lower‑income shoppers shifted to bargains.
Washington, Nov. 3 – U.S. retail sales jumped in August, but the surge was led by wealthier households that are unshaken by high inflation, according to Xinhua reporting on a study released by experts and credit‑card data from American Express.
Retail growth in the United States in August was largely driven by affluent consumers who continue to spend on travel, dining and entertainment, even as the overall economy is hit by higher prices, the article noted.
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 earners are buying the same things at higher prices, but in dollar terms they are spending less.
American Express, a major U.S. credit‑card company, reported a surge in revenue to 20.1 billion U.S. dollars, up 9 percent year‑on‑year, in the third quarter, with card spending up 8 percent to 454 billion dollars.
Within that data, travel and entertainment spending grew 10 percent, airline spending climbed 13 percent and restaurant purchases rose 9 percent, Forbes reported in an October 26 article, noting that American Express has a relatively affluent customer base.
Credit‑card use also varies by income: affluent households use cards for leisure travel and entertainment, while lower‑income shoppers increasingly rely on plastic credit to meet day‑to‑day needs.
American Airlines echoed the trend, posting third‑quarter revenue of 16.3 billion dollars, up 19.3 percent from the same period a year ago, and citing resilient demand for flights and other discretionary activities.
Meanwhile, discount retailers Dollar General and Dollar Tree both beat quarterly sales expectations in August, as lower‑income consumers sought bargains on daily necessities, the report said.
Dean Baker, a macroeconomist and co‑founder of the Center for Economic and Policy Research, told Xinhua that wage growth has hit a wall despite elevated inflation, meaning lower‑income groups have fewer resources to offset price rises.
The data underscores a growing disparity in consumer behavior: while affluent Americans continue to spend on discretionary categories, lower‑income households are downgrading to less expensive options, and are forced to stretch limited income at the expense of leisure and dining.
With the stock market near all‑time highs, many affluent consumers have a financial cushion that protects them from the impact of inflation, the experts said, reinforcing the segment’s capacity to keep retail sales buoyant.
These figures suggest that U.S. retail growth will remain uneven, with wealthy consumers feeding sales momentum while weaker‑income families tighten budgets amid the persistent inflationary environment.
