Americans keep spending while "grumbling" about the economy

American consumers are doing something that's leaving economists both reassured and puzzled: spending steadily while complaining bitterly about the economy. Axios reports that retail sales rose zero point two percent in June, the fifth straight monthly gain, even as gasoline prices rose and real wage growth stalled. Excluding gas stations, the picture brightens—retail climbed zero point seven percent, with strong showings in auto sales, e-commerce, and sporting goods. A labor market that remains historically stable appears to be the cushion. Jobless claims fell to two hundred eight thousand last week, and rising household wealth is giving consumers room to spend despite their sour mood. For the Federal Reserve, this resilience is both a relief and a headache: it keeps the economy growing, but it makes it harder to predict how quickly inflation will ease. As one chief economist puts it, consumers are grumbling in surveys, then turning around to spend openhandedly.

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