Consumer Spending Remains Strong: Insights from Amex, Netflix, and Retail Sales Data

The US consumer market shows no signs of weakness, despite some concerns. American Express reported record card spending, while Netflix cited healthy member growth as the driver of its better-than-expected Q2 growth. June retail sales data also beat expectations, with gains seen across general merchandise and personal care stores. The strength of the US consumer market has contributed to the stock market's recent records.

The US consumer market has shown remarkable resilience, defying expectations of weakness and contributing to the stock market's recent records. American Express reported record card spending in the second quarter, while Netflix cited healthy member growth as a driver of its better-than-expected Q2 growth. Additionally, June retail sales data exceeded expectations, with gains seen across general merchandise and personal care stores.

American Express, a company that has traditionally benefited from a focus on wealthier customers, reported that total spending on its cards jumped 7% in the second quarter, matching the first quarter and exceeding the 6% increase a year ago. However, travel spending was weaker than transactions for goods and services, with economy class domestic airfare being the primary source of the weakness. Despite this, spending on premium cabins and high-end hotel bookings remained strong, with increases of 10% and 9% respectively [3].

Netflix, a company that has seen significant growth in recent quarters, reported strong member growth as a key driver of its better-than-expected Q2 growth. The company's subscriber base continues to expand, indicating a robust demand for streaming services.

June retail sales data, released by the Census Bureau, beat expectations by rising 0.6% month over month. This was a significant improvement from the declines seen in prior months, which were weighed down by weak auto sales. The strength in retail sales was driven by gains in general merchandise and personal care stores, indicating a broad-based recovery in consumer spending [1].

The resilience of the US consumer market has contributed to the stock market's recent records. The strong retail sales data and robust spending by American Express and Netflix customers have provided a boost to investor confidence. However, the market remains cautious about potential headwinds, such as the impact of tariffs and increased competition in the premium card space.

In conclusion, the US consumer market has shown no signs of weakness, with strong spending and growth across various sectors. This resilience has contributed to the stock market's recent records and provides a positive outlook for the economy. However, investors should remain vigilant about potential risks and monitor key economic indicators closely.

References:
[1] https://www.cnbc.com/2025/07/17/the-us-consumer-is-pushing-back-against-recession-fears-once-again.html
[2] https://www.ainvest.com/news/bank-strategic-merger-centre-1-catalyst-enhanced-market-expansion-2507/
[3] https://www.cnbc.com/2025/07/18/rich-american-express-customers-spend-freely-with-one-exception.html