In brief
In the latest U.S. retail data, American Express posted a 9% revenue jump to $20.1 billion in the third quarter, with travel and entertainment spending up 10%. While affluent consumers continue to fuel growth, discount chains like Dollar General and Dollar Tree are benefiting from bargain‑hunters among lower‑income shoppers. Analysts note that lower‑income consumers are cutting back on discretionary spending as wage growth stalls.
American Express reported a 9 percent year‑over‑year revenue surge to $20.1 billion in the third quarter, while overall card spending climbed 8 percent to $454 billion and travel and entertainment purchases jumped 10 percent, Xinhua reported on 4 November 2026. Credit‑card usage data shows that affluent households are the primary drivers of this lift.
Clay Ramsay told Xinhua that overall consumer spending is being fueled by affluent households.
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‑income consumers are spending more in dollar terms as prices rise.
American Airlines said its third‑quarter revenue rose 19.3 percent year‑over‑year to $16.3 billion, underscoring the resilience of travel demand, Forbes noted in an October 26 article referenced by Xinhua.
Meanwhile discount retailers Dollar General and Dollar Tree beat quarterly sales expectations in August as lower‑income shoppers turned to bargain‑hunters for daily necessities, a trend that highlights income‑based disparities in consumer behavior.
Dean Baker, macroeconomist and co‑founder of the Center for Economic and Policy Research, told Xinhua that wage growth has hit a wall despite elevated inflation, adding further pressure on lower‑income spending.
