Companies lower prices to attract customers. It works.

Companies are offering deep discounts this summer, and consumers are cashing in on them.

From Amazon to McDonald’s and Best Buy to JetBlue, major brands are ramping up efforts to keep price-pressed shoppers open their wallets, and the latest data shows that it works.

The US economy grew by 2.8% in the second quarter, according to government estimates released on Thursday. Federal investigators have attributed much of the unexpected strong consumer spending to goods and services alike – from cars and furniture to vacations.

During the tenth anniversary of Amazon’s two-day summer sales event last week, shoppers spent a record $14.2 billion at US online retailers, up 11% from Prime Minister’s Day. last year, according to Adobe Analytics. And the overall sales were not due to higher prices, according to Adobe. Instead, the analytics firm’s data shows e-commerce prices have fallen for 22 straight months, and those discounts have helped juice demand.

“You have a high level of promotion, a high level of discounts, and that creates a perfect storm where the customer feels like, ‘This is a great opportunity for me to buy. I’m happy to use money,’” said Vivek Pandya, Adobe’s principal analyst.

Cooler prices in the consumer economy are helping inflation continue to fall. The closely watched inflation rate eased to 2.5% in June from 2.6% in May, according to data released Friday.

Retailers like Best Buy and Nordstrom were also running sales during Prime Day. Salesforce, which tracked online spending at retailers other than Amazon during the shopping event, found more ads being offered elsewhere as well. Discounts have increased 10% since Prime Minister’s Day last year to average 22% off list prices, and US sales are up 3%.

“For the first time in a long time, we’re seeing order volume turn positive and discounts up,” said Caila Schwartz, director of customer insights at Salesforce. “The lesson is simple: If retailers offer discounts and offer real value, they will release the built-up demand pressure valve and see incredible success. If they don’t, retailers can put themselves at risk. of losing customers will go elsewhere.”

While consumer spending has helped the economy out of the pandemic — and it has held up under more price pressure than most economists expected — there are signs of frustration underneath.

Citigroup characterized the “active US consumer” in its latest earnings call, but Chief Financial Officer Mark Mason noted that the main strength is among those with fixed income and credit.

“When we look at our customers, they are high-income earners who have more money than they saved at the beginning of 2019, and they are more than 740-FICO customers who are driving income growth and maintaining interest rates. those with lower credit scores “are seeing a bigger drop in payment rates and borrowing more, because they’re being hit harder by higher prices and interest rates,” he said. like that.

Federal Reserve officials in Philadelphia found credit card delinquency rates reached their highest levels in nearly 12 years in the first quarter of this year. Although the total number of delinquent accounts and the size of the cards decreased slightly, the researchers noted that “those with delinquent accounts have the largest accounts left unpaid.”

These and other consumer credit data in recent months highlight “the difficulty millions of households are dealing with trying to make ends meet,” Bankrate Chief Financial Analyst Greg McBride told NBC News Wednesday.

Companies are responding to these pressures with announcements being made to reverse or prevent price revolutions.

In May, Target announced price cuts on 5,000 popular items such as meat, bread and paper products, and Walgreens made a similar move. Walmart launched a low-cost personal food line this spring, with prices ranging from $2 to $15 for refrigerators and pantries.

The sale has gone well past the grocery aisles. JetBlue and Southwest Airlines are also offering limited-time deals, with some domestic flights starting at $49 during select weeks this summer. After racing to increase capacity to meet rising demand, many airlines now have more seats than they can fill, and airlines benefit from cheaper tickets.

Restaurant chains are also making progress. McDonald’s is adding $5 meals that were originally planned to last only four weeks, as rivals continue to offer offers such as Burger King’s “Your Way Meal” and menu of Starbucks pairings starting at $5.

Data that location analytics firm Placer.ai released this month suggests these gambits are working. Foot traffic at McDonald’s jumped 8% on June 25, the day the premium meal debuted, compared to the average Tuesday so far this year, and remained at least 5% higher for of each subsequent day that week.

Weekly visits to Chili’s have increased since the chain implemented its “3 for Me” sale this year, Placer.ai found, jumping nearly 27.7% over the same period in mid-Mots. June compared to 2023.

Young consumers are increasing their spending, according to American Express, which said millennial and Gen Z cardholders increased their spending by 13% in the second quarter.

“These smaller card members continue to show strong engagement, and we’re seeing them perform 25% better, on average, than our larger customers,” Chief Financial Officer Christophe Le Caillec told investors last week. “In some areas, like dining, they work twice as hard.”

After the last few years of the inflation rollercoaster, many consumers are paying attention to price changes, said Adobe’s Pandya.

“They understand how quickly the winds can change,” he said. “They will take advantage of these times when the quality is good.”