Americans are still spending, but they are getting more cautious and looking for deals.
A recent University of Michigan survey showed that Americans expect inflation to be 4.6% over the next year, down slightly from an expectation of 4.8% in May
On the first day of Amazon’s Prime Day event, U.S. online spending rose 5.3% year over year to $8.3 billion across retailers, according to Adobe Analytics, a part of Adobe, which expected the four-day event to drive $26.3 billion in U.S. online spending. Meanwhile, Costco Wholesale’s (NASDAQ: COST) May sales rose 14.5% year over year to $20.95 billion. This shows that value-oriented platforms can still win when shoppers are under pressure.
However, certain areas of the consumer economy are under strain. Beyond Meat’s first-quarter revenue fell 15.3% year over year to $58.2 million, with the company citing weak demand and reduced distribution in certain channels. Conagra Brands also showed that certain food categories are not immune.