The McDonald’s CEO warned that strains on middle- and lower-income Americans could spell broader trouble for the U.S. economy. While affluent households continue to spend on travel and benefit from buoyant stock markets, lower-income consumers are pulling back hard, with McDonald’s seeing double-digit traffic declines from this group. Many are even skipping meals, particularly breakfast, to save money. The remarks echo recent warnings from retailers and discount chains that discretionary spending is weakening, suggesting headline consumption data may be masking a fragile backdrop.
- “middle and lower income consumers, they’re under a lot of pressure
- upper income earning over $100k, things are good. Stock markets are near all time highs … barometers of upper income consumers are doing quite well
- with middle and lower income consumers is actually a different story.
It’s that consumer is under a lot of pressure in our industry. Traffic for lower income consumers is down double digits”
The Fed are acutely aware of this but resilient inflation is complicating thier rate cut path.
