Walmart's disappointing sales data and Home Depot's strong performance among budget-conscious DIY consumers suggest that the American middle-class consumer is becoming more frugal, Reuters reported. Walmart's comparable sales (excluding pharmacy-related items) for the second fiscal quarter increased by 3.4%, but the growth rate slowed, and the average basket size decreased. Meanwhile, U.S. retail sales in July saw their first monthly decline in nine months. Home Depot, on the other hand, benefited as consumers shifted towards smaller, more deliberate purchases, with many homeowners opting for DIY projects to save money, directing spending towards its core business. Analysts noted that consumers are not stopping spending entirely but are becoming more cautious about where their money goes, which gives an advantage to retailers that consistently offer value.