WASHINGTON — Despite high inflation and high interest rates, Americans are continuing to spend money this summer.
Channel 2 Washington Correspondent Nicole D’Antonio is taking a look at what a new retail shopping report means for families.
From back-to-school shopping to Amazon Prime Day deals, a new retail report highlights how families are spending their hard-earned cash.
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The U.S. Department of Commerce data found retail sales rose 1% from June to July, the largest increase in more than two years.
Sales from online stores also saw big spikes.
A retail sales report from Bankrate also found that e-commerce sales had jumped almost 7% from last year.
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“People are still spending, and that’s one of the biggest themes of the economy right now,” Ted Rossman, at Bankrate, said.
The spending isn’t stopping as summer ends either, instead it’s shifting to back-to-school needs.
According to the National Retail Federation, families are expected to spend about $875 per student on school supplies, clothes and backpacks this year. The NRF said it’s the second highest amount in their survey’s history.
“We are seeing some signs of life here,” Rossman told Channel 2 Action News. “And some signs of normalization too. The pendulum swung so far towards experiences, it’s starting to swing back a bit towards physical goods.”
Financial experts say that July’s reading is a positive sign for the U.S. economy, but that more Americans are struggling with credit card debt.
A separate report by Bankrate found that nearly half of all credit card holders are carrying a balance from month-to-month, and a majority have been in debt for more than year.
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