Frugality Fatigue Spurs Americans to Trade Up as Optimism Grows

Americans are buying more expensive makeup and sandwiches again as Estee Lauder Cos. and Dunkin’ Brands Group Inc. get a boost from mid- to high-income customers.

“Frugality fatigue” is driving a rise in retail sales among consumers who’ve “grown tired of putting off discretionary purchases,” said Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit. Recent gains, including a 6.5 percent increase in February from a year earlier -- have been bolstered by improvements in consumer confidence and the labor and stock markets, along with some stabilization in home prices, he said.