What are people buying these days?

associated press

What we’re buying — and not buying — says a lot about how consumers are feeling these days.

It also says a lot about the American economy, considering that consumer spending accounts for 70 percent of all U.S. economic activity. Every time we go out to lunch, buy a new sweater or pick up a DVD, we’re contributing to the retail sector, the biggest sector in the economy.

This week, companies from Home Depot to Target to Saks reported results for their latest quarters. Some were strong, some were weak. All tell tales of the consumer: thrifty, staying close to home, and focusing on basics.

Here’s a look at what people are and aren’t buying.

Home

WHAT WE’RE BUYING: People are buying more garden products and paint, especially in areas with high foreclosure rates such as California, according to Home Depot. CEO Frank Blake told investors that as homes are sold as part of the foreclosure process, that spurs sales of paint and carpet upgrades, since owners want to improve their new homes.

Lowe’s said consumers — with an eye toward boosting the appearance of their homes — bought a lot of mulches, seed and patio blocks.

There was also solid demand in faucet repair and for repair parts for outdoor power equipment.

WHAT WE’RE NOT: Home Depot said consumers continued to limit their purchases of bigger items such as appliances.

Purchases above $500 fell 16 percent compared with last year for Lowe’s.

Sears said its decline in its home business, including appliances, continues to be affected by the state of the housing market.

Clothes and other basics

WHAT WE’RE BUYING: Target says the items people feel they need the most, such as products related to health care, food and beauty, are doing the best. The beauty category benefited from people making those purchases at Target rather than in more-expensive department stores.

More people were shopping at stores run by TJX Cos., such as T.J. Maxx, Marshalls and HomeGoods. Sales of basics such as sheets and towels and clothing were all strong.

WHAT WE’RE NOT: Clothes and home goods were weak in Target’s second quarter, and Kathy Tesija, executive vice president of merchandising, summed up the consumer mindset in one word: “cautious.” The number of people coming into the stores has slowed, and people who made purchases spent less money. Frequent shoppers aren’t coming in as often and they’re cutting their weekend trips even more than their weekday trips.

Food

WHAT WE’RE BUYING: Spam, Spam, Spam. Hormel said sales of its meat-in-a-can continued to rise in the quarter, gaining in the low double digits, and sales of other canned items and Hormel chili kept improving. Hormel’s party trays, which sell for about $10, continued to be strong, as they have been throughout the recession.

BJ’s Wholesale Club, which has been seeing more customers coming in, said sales of cereal, meat and household items made gains in its second quarter.

WHAT WE’RE NOT: Hormel said customers bought fewer of its more-expensive items, such as microwavable meals, while its food service division, which serves businesses like restaurants and hotels, continued to slump.

Sales of Weight Watchers Smart Ones entrees fell in the quarter, too, Heinz reported. It noted the frozen food category is tied to consumer confidence and has been down for a year.