Why Americans keep splurging even as they turn sour on the economy

US consumer confidence data for July, which was released Tuesday, showed a third straight month of decline. The Conference Board, which runs the monthly surveys, reiterated that it expects strong headwinds for consumer spending in the next six months, echoing what analysts have been saying since the start of the year—that people are going to tighten their belts.

However, consumers have yet to actually do so. US retail sales increased 1% in June, the latest figures available, with nine out of the 13 tracked retail categories increasing last month.