Spending by American consumers remains robust, with strong demand for premium beverages, pickup trucks, and everyday essentials, suggesting the broader economy continues to hold steady despite widespread concerns about inflation and job growth. Major corporations are reporting solid sales figures, reinforcing the idea that economic activity is still moving forward. n nThis resilience comes even as official government data remains unavailable due to ongoing delays from a prolonged shutdown. Corporate insights are now serving as key indicators of economic health. PNC Financial Services CEO Bill Demchak noted that consumer spending has shown “remarkable resilience,” contributing to a fundamentally stable economic environment. He also highlighted that rising consumer deposits suggest households still have financial cushion. n nSeveral leading companies have echoed this sentiment. 3M’s CFO Anurag Maheshwari reported sustained demand for products like Filtrete air filters, Scotch tape, and Meguiar’s car care items, despite softer consumer confidence metrics. Similarly, General Motors exceeded earnings expectations in the third quarter, driven by high demand for trucks and lower-than-anticipated costs tied to tariffs. GM’s CFO Paul Jacobson expressed optimism, stating that 2026 could outperform 2025. n nHowever, not all trends are uniformly positive. Coca-Cola executives pointed to a growing divide in consumer behavior: higher-income groups continue spending, while lower-income shoppers are pulling back. This divergence is reflected in the performance of Coca-Cola’s premium brands such as Topo Chico and Fairlife, which are outpacing mainstream offerings. CEO James Quincey acknowledged that while many Americans remain financially stable, some face mounting pressure from persistent inflation, shifting trade policies, and global instability—factors that may have lasting effects. n nAmerican Express CEO Stephen Squeri summarized the situation by describing the current state as “truly a bifurcated economy,” where economic outcomes vary significantly across different population segments. n— news from Axios
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Americans are still buying things, bad economic vibes or not
Consumers are buying higher-priced drinks, pickup trucks and more — a signal from corporate America that the economy appears to be chugging along just fine. n nWhy it matters: These anecdotes from the nation ‘s biggest brands carry more weight in the absence of official government data, delayed for the foreseeable future as the shutdown drags on. n nWhat they ‘re saying: Consumer spending “has been remarkably resilient … ultimately this is driving a sound economy,” PNC CEO Bill Demchak said last week. n n”We ‘ve got a whole bunch of things that could land on us, but none of them are there — and none of them are certain,” Demchak said after noting that consumer deposits keep growing. n nThe big picture: Some of the nation ‘s biggest brands and economic bellwethers are reporting strong sales. That signals that, at least in aggregate, sluggish jobs growth and still-high inflation are not denting spending. n n”Though consumer sentiment remains soft, we experienced strong demand for Filtrete [air] filters, Scotch tape and Meguiar ‘s [car care] products,” 3M CFO Anurag Maheshwari said. n nZoom in: Some companies say the hit from President Trump ‘s tariff policies is not as bad as previously feared. n nThe latest example is General Motors, which reported better-than-expected earnings for the third quarter, thanks to strong demand for its pickup trucks and smaller tariff-related charges. n n”We expect next year to be even better than 2025,” GM CFO Paul Jacobson told investors on Tuesday. n nThreat level: That said, soda giant Coca-Cola warned that higher-income consumers might be helping hold the line on spending as lower-income shoppers pull back — a months-long economic trend that could be worsening. n nThat split was evident in Coke ‘s business in the third quarter; pricier drinks brands, including Topo Chico or Fairlife, are outperforming. n n”While many consumers remain in overall good shape, certain segments of the population are under pressure,” Coca-Cola CEO James Quincey told Wall Street analysts on Tuesday. n n”Some factors are transitory … others may be long lasting, like the cumulative impact of inflationary pressures, uncertain trade dynamics and an ever changing geopolitical environment,” Quincey added. n nThe bottom line: “It is truly a bifurcated economy,” American Express CEO Stephen Squeri told investors last week.