Second-quarter reports indicate that Americans have changed their spending priorities from appliances to new and improved electronics.

• Rather than purchasing appliances and clothing, Americans now tend to put their money toward new electronics and in their savings.
• Electronics are constantly evolving to become newer, cooler and better–causing an incentive to buy the latest items.
• Some clothing retailers, such as American Eagle Outfitters and Macy’s, are giving consumers electronic incentives to buy apparel (like giving away smartphones).

Facts & Figures

• Sales of televisions, computers, video and telephone equipment grew 1.8% in the first six months of 2010.
• Spending on appliances decreased 3.6% and spending on furniture decreased 11%.
• The U.S. savings rate increased to 6.4% from May to June.
• In the first 6 months of 2010, Americans spent $534 billion on durable goods, up 5.9% from last year.

Best Quote

“But who needs to buy more ties? I mean, come on, I have a great computer.” -Spence Witten, 27-year-old consumer