Rising Costs and Cautious Spending: US Consumers Embrace Budget-Friendly Options, Shift Away from Premium Products

Amazon and Starbucks executives have noticed a shift in consumer spending habits. US consumers are becoming more cautious with their spending, according to the companies’ recent statements. This is reflected in Amazon’s CFO mentioning that customers are looking for deals and opting for lower-priced items. Similarly, Starbucks’ CEO has commented on the growing caution among infrequent customers when it comes to spending.

Despite facing challenges such as inflation, US consumers are still trying to stretch their dollars. Lower- and middle-income households are seeing softening spending growth, as reported by Bank of America. Companies like McDonald’s have also noted this trend, with their CFO stating that customers are trading down to value menu items in an effort to save money.

The current economic outlook and rising costs continue to impact consumer confidence and spending habits, making it essential for companies to adapt to these changes. While executives at Amazon and Starbucks did not provide immediate comments when contacted by BI outside of regular business hours, their statements reflect a growing trend among US consumers towards more thoughtful and budget-conscious spending habits.