The post-pandemic consumer spending spree is beginning to slow, as evidenced by recent reports from major U.S. companies like PepsiCo and Delta Air Lines. Both companies have issued cautious financial outlooks, citing increased price sensitivity among consumers.
The post-pandemic consumer spending spree is beginning to slow, as evidenced by recent reports from major U.S. companies like PepsiCo and Delta Air Lines. Both companies have issued cautious financial outlooks, citing increased price sensitivity among consumers.

PepsiCo noted that the pressure of inflation and high borrowing costs have led to tighter household budgets, resulting in more price-conscious consumers. Similarly, Delta Air Lines CEO Ed Bastian pointed to lower fare discounting in the domestic market as customers push back against premium pricing.

This shift in consumer behavior is further supported by the latest inflation data, which showed a significant decline in the monthly Consumer Price Index for the first time since the pandemic. While the 12-month index remains above the Federal Reserve’s 2% target, it has cooled more than expected.

Despite the slowdown in consumer spending, economists do not foresee an imminent recession. While weakening, the labor market still shows healthy wage growth that outpaces inflation. Analysts suggest the economy may be entering a period of “disinflation,” where price growth slows without triggering a full-blown recession.

As more consumer-focused companies prepare to release their business updates in the coming weeks, the market will be closely watching for further signs of this economic shift and its potential impact on various sectors.