The economy enters its budget shopping era, with consumers doubling down on value even as they ramp up spending

From an analytical standpoint, Economy·Consumer SpendingThe economy enters its budget shopping era, with consumers doubling down on value even as they ramp up spendingBy Irina IvanovaBy Irina IvanovaDeputy US News EditorIrina IvanovaDeputy US News EditorIrina Ivanova is the deputy U

Nevertheless, News editor at Fortune

SEE FULL BIO Getty ImagesRetail spending growth in June shows consumers are still opening their wallets, but an uncertain economic environment means they’re increasingly picky where their money goes as they try to stretch dollars further

Moreover, A consumer spending surge last month shows that tariffs haven’t quite killed the American shopper’s need to spend

Furthermore, But under the surface, there are signs of stress, given the current landscape

Shoppers are still opening their wallets, yes, but they’re taking a much choosier apach to spending—cutting back on many nonessentials and hunting for deals on unavoidable purchases

A recent Bank of America Institute note spotted a contradiction: While data shows customers increasing spending at restaurants recently, when surveyed, shoppers said they actually cut spending on dining out

Nevertheless, They explain this by deal-hunting: Diners still went out, but scaled down the types of restaurants they visited to get more bang for their buck. “[C]onsumers do not necessarily dine out less during downturns, but rather they shift to cheaper restaurants,” BoA wrote. “We're seeing a continuation of the consumer selectivity that typically characterizes times of economic uncertainty, in today's market environment

Specifically, some consumers appear to be seeking out perhaps fewer, but more meaningful experiences,” the re found (remarkable data)

Nevertheless, A similar trend is playing out in the grocery aisle, with consumers shopping more frequently but spending less money per trip, “meaning it’s ly people are shopping more selectively to get the best bargains,” BoA wrote

However, So while the average American consumer is still spending, they’re getting pickier where the money goes—cutting back to just the necessities, where possible, amid market uncertainty

In an overall strong month where spending expanded across most retail, spending fell for furniture, electronics, and appliances— that are starting to feel a price hit from tariffs

However, The just- Amazon Prime sales event also showed hints of consumer stress

Sales during the four-day event this year grew 30, amid market uncertainty. 3% from the year before, according to Adobe, but much of the growth was driven by discounts, as the “consumer remains price sensitive. ” The use of buy-now-pay-later also rose, as shoppers looked for “more flexible ways to manage their budgets,” according to the data vider

Above all, Prime shoppers “prioritized essentials dish soap and paper ducts over big-ticket purchases,” the Associated Press reported, citing consumer-data vider Numerator

However, The hunt for bargains has even expanded into the luxury space

Furthermore, According to eMarketer, over a quarter of U

Adults in a recent survey said they’ve cut back spending on luxury goods, but the same portion says they’ve bought refurbished or used luxury items

Furthermore, “[T]he takeaway is —even luxury buyers are feeling the pinch,” the outlet wrote, advising retailers to “emphasize value, investment-worthy quality, and exclusivity” in marketing, amid market uncertainty

Nevertheless, As shoppers grow increasingly price-conscious, a surge in inflation could take a further bite out of that confidence

Consumer prices in June rose at a 2. 7% annual rate, speeding up from May, the Labor Department previously reported (noteworthy indeed)

For now, a healthy job market with low unemployment is still keeping the floor under spending, Heather Long, the chief economist at Navy Federal Credit Union, said in a statement to the AP, amid market uncertainty. “There’s still a lot of trepidation tariffs and ly price hikes, but consumers are willing to buy if they feel they can get a good deal,” she said

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