But what they're spending their money on is shifting.
Retail sales were soft but not terrible in June. More importantly they are at least keeping up with inflation, and don't foreshadow a recession.
Between the pandemic and its economic ripple effects, the consumer experience has been a wild ride.
Until recently, consumers had been spending less on goods and more on services. That's changing. Here's what it could mean for inflation.
It's a tale of two inflations: goods versus services.
The “industrial outdoor storage” industry has been booming during the pandemic, as retailers try to find creative places to park their goods — literally.
Wednesday the government will tell us how much prices changed year over year in July. Inflation was an alarming 9.1% in June.
While consumers cut back on goods spending, spending on services jumped.
After reaching a record high of nearly 34% early in the pandemic, the savings rate has dipped below its pre-pandemic level.
People want to get outside and do stuff, not just buy stuff. That's reflected in surging travel bookings — and airfare.