The headline uses that term because consumer spending, across the economy as a whole, is up and a healthy amount. The “pullback” appears to be in select subsectors where price increases have drastically outstripped core inflation and/or specific companies who have done so without regard for competitors’ pricing.
In fairness, this is a new development as far as economics goes. It’s very unusual that a fast food burger is as expensive as a sit down restaurant. Which is why we’ve used things such as the Big Mac index for understanding purchasing power. Prior to this, it was assumed that fast food was a kind of essential item that arrived at its lowest cost.
What other consumer spending is up? Does that include rent and groceries? I mean, is that “increase” I spending not due to ridiculous amounts of “inflation” (read: corporate profits)?
(Can’t read the posted article since it blocks adblockers apparently)
Real personal consumption expenditures is the most commonly used metric for “consumer spending” and it is adjusted against inflation. That is the number which is seeing 0.3-0.5% growth month over month, in 2024. There are other ways to measure consumer spending which are not adjusted against inflation or may only target baskets of goods.
I guess “consumer pullback” is one way to describe what’s going on with the economy…
The headline uses that term because consumer spending, across the economy as a whole, is up and a healthy amount. The “pullback” appears to be in select subsectors where price increases have drastically outstripped core inflation and/or specific companies who have done so without regard for competitors’ pricing.
Thank you.
It shouldn’t (still) surprise me, but it always does…when people do drastically misunderstand or misinterpret economic information.
In fairness, this is a new development as far as economics goes. It’s very unusual that a fast food burger is as expensive as a sit down restaurant. Which is why we’ve used things such as the Big Mac index for understanding purchasing power. Prior to this, it was assumed that fast food was a kind of essential item that arrived at its lowest cost.
What other consumer spending is up? Does that include rent and groceries? I mean, is that “increase” I spending not due to ridiculous amounts of “inflation” (read: corporate profits)?
(Can’t read the posted article since it blocks adblockers apparently)
https://archive.ph/10cGh
Real personal consumption expenditures is the most commonly used metric for “consumer spending” and it is adjusted against inflation. That is the number which is seeing 0.3-0.5% growth month over month, in 2024. There are other ways to measure consumer spending which are not adjusted against inflation or may only target baskets of goods.
and “consumer saying ‘hey waitaminute, i don’t actually need half the bullshit they’re telling me i can’t live without…’”