In brief
August U.S. retail sales rose as wealthy consumers continued to spend on travel, restaurants and entertainment, according to Xinhua. Credit‑card data from American Express confirms this trend, while discount retailers saw gains from lower‑income shoppers. Lower‑income Americans are scaling back, experts say.
WASHINGTON, Nov. 3 – U.S. retail sales jumped in August, a trend Xinhua says is largely propelled by affluent consumers spending on travel, restaurants and entertainment, despite persistent high inflation.
American Express reported that its third‑quarter revenue reached $20.1 billion, up 9 percent from a year earlier, and that card spending rose 8 percent to $454 billion. Travel and entertainment purchases grew 10 percent, airline spending climbed 13 percent and restaurant sales increased 9 percent.
Clay Ramsay, a researcher at the Center for International and Security Studies at the University of Maryland, told Xinhua:
It’s a fact that overall consumer spending is being fueled by the one‑fifth or so who are best off.
Ramsay added that lower earners are also spending more in dollar terms, buying the same goods at higher prices.
Forbes, citing a U.S. business‑magazine article, noted that “American Express has a relatively affluent customer base.”
American Airlines reported third‑quarter revenue of $16.3 billion, a 19.3 percent rise from a year earlier, underscoring resilient demand for travel and leisure.
Dollar General and Dollar Tree, both discount retailers, beat quarterly sales expectations in August as lower‑income shoppers sought bargains on daily necessities, reflecting a shift toward cheaper options amid stagnant wage growth.