US Homeowners Opt for DIY Repairs Over Expensive Renovations Amid Economic Uncertainty

Home improvement giants Lowe's and Home Depot have reported second-quarter earnings that reveal a significant shift in consumer behavior. Americans are still spending on their homes, but they're opting for smaller repairs and maintenance projects over expensive renovations.

Lowe's sales rose to nearly $26 billion, up from $24 billion a year earlier, while comparable sales edged up just 0.2 percent. Home Depot delivered stronger-than-expected quarterly sales of nearly $48 billion, beating Wall Street expectations, with adjusted earnings coming in at $4.92 a share.

The retailers attribute this shift to homeowners' caution during the second half of the year. Chief executive Marvin Ellison said customers are likely to remain on the sidelines until they feel more confident about the economy and their own finances.

Home Depot's average comparable transaction increased 2.8 percent, even as the number of transactions fell 1 percent. The retailer has maintained its full-year outlook, forecasting sales growth of between 2.5 and 4.5 percent. Lowe's downgraded its annual forecast to $92 billion, compared with its previous range of $92 billion to $94 billion.