Key Takeaways
\nAmericans have been reducing their spending on travel, and increasing their outlays at restaurants, American Express said.This sort of “consumer selectivity” in how people splurge is common during economic uncertainty, Bank of America said.<\/p>\n
Consumers are splurging less on suites and window seats, while spending more on eats.\n<\/p>\n
Americans are cutting back on travel, but spending more on meals out, American Express (AXP<\/a>) said on a conference call Friday. It was the latest credit card issuer to say that there’s been a shift in the way that people treat themselves, with Bank of America (BAC<\/a>) earlier this week saying restaurant spending rose last month.\n<\/p>\n AmEx members’ second-quarter spending on airfare and lodging was soft, but their spending on restaurants rose 8% from the first quarter, CEO Stephen Squeri said. Cardholders’ spending, overall, hit a quarterly record<\/a> for the period that ended June 30, he said, citing “remarkable resilience across our consumer base.\u201d\n<\/p>\n Americans have been shelling out more at restaurants, with spending up 2.1% year-over-year in June, according to Bank of America’s analysis of credit and debit card transactions. Meanwhile, they sought out value while grocery shopping, spending just 0.1% more at supermarkets, the bank said. (One way that’s shown up lately: increased interest in store-brand products<\/a>.)\n<\/p>\n U.S. retail sales data released earlier this week<\/a> showed an 0.6% increase in spending at bars and restaurants, a measure of discretionary spending, from May levels.\n<\/p>\n Signs of ‘Consumer Selectivity’ in the Economy <\/p>\n “Consumer selectivity” regarding what’s worth splurging on is common when the economy is uncertain, Bank of America said. “Some consumers appear to be seeking out perhaps fewer, but more meaningful experiences. This is particularly the case for lower-income households,” its analysis said.\n<\/p>\n Airlines have also seen sluggish demand for the main cabin, where more price-sensitive travelers tend to book seats. The industry is reducing main cabin capacity<\/a> as carriers, such as Delta Air Lines (DAL<\/a>) and United Airlines (UAL<\/a>) lean more on premium tickets<\/a>.\n<\/p>\n