Consumers spending on experiences but cutting back on everyday purchases due to high prices

From CNBC: 2024-05-07 06:00:02

As Home Depot and Walmart prepare to report earnings, the state of the consumer in 2024 is already evident. U.S. consumers are spending on travel, entertainment, and experiences, but are tightening their wallets for everyday purchases due to high prices. Companies are navigating a delicate balance between offering promotions and maintaining profitability.

While credit card companies report strong spending trends, consumers are becoming more price-sensitive, impacting companies like Coca-Cola, Tyson Foods, and Hershey. Everyday purchases are taking a hit as consumers seek value in lower-cost options. Restaurants and retailers are feeling the pressure to offer promotions to attract customers while managing profit margins in a challenging economic climate.



Read more at CNBC: What we know about the consumer so far