NEW YORK (AP) — Spam's back on the menu at American homes. That says a lot about the state of the economy.

While we all haven't turned into couch potatoes, some recent corporate news from the likes of Hormel Foods Corp., Jo-Ann Stores Inc., TiVo Inc. and Wal-Mart Stores Inc. provides mounting evidence that more Americans are entertaining themselves with backyard barbecues, craft projects and lots of television watching.

Why? Gas costs $4 a gallon nationally on average and it's stopping people from traveling far unless they need to.

Then when they do get to the stores, a gallon of milk costs nearly $4 — or almost $6 if it is organic. Milk prices are up more than a 13 percent rise from a year ago, while the cost of bread has risen 14 percent from last spring, butter is showing nearly an 8 percent gain and coffee is up 4 percent in the last year, according to the Labor Department.

Even Spam has seen its price jump 7 percent from a year ago to $2.62 for a 12 oz. can. But that isn't slowing sales — Spam's maker, Hormel Foods, said strong sales of its pork-in-a-can helped push up its second-quarter profits 14 percent. Spam sales were up 10.6 percent in the 12-week period ending May 3, compared to last year, according to sales information coming from The Nielsen Co.

And higher prices aren't just being seen in food and fuel. Everything from diapers to detergent could become more expensive now that companies like Dow Chemical Co. and Eastman Kodak say they will raise prices to offset their soaring energy costs.

Consumer inflation is getting broader and deeper and, for most Americans, it is far outpacing their income growth.

The Commerce Department's latest reading on personal incomes showed that they rose by just 0.2 percent in April, half of the March increase. That would have been even weaker without the boost their income got as the government began mailing out the first of $106.7 billion in economic stimulus payments.

At the same time, the arrival of the stimulus checks didn't spur much in the way of consumer spending, which edged up a small 0.2 percent in April, just half the 0.4 percent rise in March. Excluding inflation, the performance was even weaker, showing no gain in spending after excluding price changes.

That's reflected in the latest data on consumer confidence, which fell to a 15-year low in May, according to the Conference Board. Spending intentions sagged significantly in most categories, including homes, autos and most big appliances.

Yet a surprising bright spot in that report was consumers' plans to buy televisions, which jumped to an all-time high of 12.2 percent in May. That is a rise from 11.4 percent in April and 8.7 percent a year ago.

"In order to get from point A to point B without spending $75 filling up the tank, households now seem bent on cocooning by staying home to watch television rather than drive to the local theater and shell out more than $11 to watch a film (and an extra $5 to get there)," said Merrill Lynch chief North American economist David Rosenberg.

That shift is helping companies like TiVo, which posted an unexpected first-quarter profit. The digital video recorder maker said that surprise profit was due in part to higher sales of its high-definition TiVo boxes, which are paired with HD televisions.

Consumers also said they intended to buy more vacuum cleaners, according to the Conference Board. If you're at home, sitting in front of the tube and eating popcorn, you're going to need to vacuum. Wal-Mart Stores Inc., during a conference with journalists on Thursday, noted that one of its strongest departments right now is floor care.

Also faring well in this tough economy was Jo-Ann Stores, the fabric and crafts retailer that swung to a first-quarter profit and beat Wall Street expectations with its results. Sales at its stores open at least a year — an industry barometer of sales strength — rose 4.5 percent, fueled by strong buying of goods for sewing and quilting, craft textiles and food crafting.

Some companies are using Americans' inclination to stay home this summer as a marketing hook. Wal-Mart has launched an "American Summer" campaign, featuring tents, grills, coolers, wicker furniture sets and inflatable pools, saying a summer getaway is "as close as your own back yard."

Should that help Wal-Mart and other companies boost sales, it will be further evidence that what consumers are buying is just as telling as what they are not.

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Rachel Beck is the national business columnist for The Associated Press. Write to her at rbeck(at)ap.org