Your Money Minute You Spent More In July...But Why 8/18/25
Aug 18, 2025
In July, Americans saw a significant rise in credit card spending, marking the highest level in three years. This surge was fueled by summer promotions like Amazon's Prime Day and recent wage growth. However, the excitement of splurging is tempered by the reality of rising prices and inflation, largely influenced by tariffs. Explore the complexities behind this spending spree and what it means for your finances!
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Biggest Monthly Jump In Credit-Card Spending
- CNBC data shows Americans had the largest monthly credit-card spending jump in the monitor's three-year history.
- That surge reflects stronger consumer activity and notable midsummer retail promotions driving purchases.
Midsummer Retail Events Drove Spending
- Steve Liesman links July's spending spike to Prime Day, Walmart deals, Target promotions, and midsummer sales.
- He says these retailer events likely boosted transaction volume and lifted overall spending.
Tariffs May Be Inflating Purchases
- Liesman and the NRF note tariff-driven price increases may be passing to consumers and raising measured spending.
- They observe some categories, like household furnishings and appliances, show signs of tariff-related inflation.