The cost to buy a home is up, inflation is wreaking havoc and fuel prices are reaching record highs, but you’d never know from looking at Americans’ spending habits. 

Consumer spending continues to show a so-called K-shaped economy with higher-income households experiencing faster growth in spending than lower-income households. However, according to an analysis from the Consumer Insights Studio, all consumer spending groups increased their spending during the first six months of 2026 compared with the same period last year. 

The analysis also found stronger growth in discretionary spending than in essential goods with 3.9% year-over-year, compared with 2% growth in staples.

Discretionary spending outpaced staples among six of the bottom eight spending groups, suggesting consumers across income levels continued to allocate money toward non-essential purchases despite generally weak economic sentiment.