US consumers are becoming more cautious with their spending habits, according to recent statements from executives at Amazon and Starbucks. Amazon’s CFO mentioned that customers were looking for deals and trading down for lower-priced items, while Starbucks’ CEO commented that infrequent customers were becoming more cautious spenders.
The current economic outlook and rising costs are impacting consumer confidence and spending habits. Lower- and middle-income households are seeing softening spending growth, as highlighted by a report by Bank of America. McDonald’s CFO also noted that customers were trading down to value menu items in an effort to save money.
Despite these challenges, US consumers are still trying to stretch their dollars in the face of inflation. Executives at Amazon and Starbucks did not provide immediate comments when contacted by BI outside of regular business hours, but it is clear that companies must adapt to these changes in order to remain competitive in the current market.