[CNN] Consumers are ‘retrenching.’ What that means for recession fears

[papy]

Consumers are ‘retrenching.’ What that means for recession fears

The difference between a recession and a recession mindset…

Consumers continue to shell out for experiences, be they pricey concert tickets, trips, or restaurant visits, said Amanda Belarmino, assistant professor of hospitality at the University of Nevada Las Vegas. At the same time, they’re cutting back elsewhere, holding back on those big-ticket items, trading down to private label and lopping off some of the in-home subscription services.
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Americans remain price-sensitive and are more likely to trade down in their purchases — or even walk away from them — but also appear to be prioritizing saving and paying down debt.
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By Allison’s estimates, consumers are spending $136 now for the same basket of goods that would have cost $100 in 2019, and they’re changing shopping behaviors as a result.
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“If you ask the economists, ‘Are we in a recession?’ they’re going to say ‘No, we’re not in a recession,’” he said. “But we know that the way consumers are shopping and the way they’re adjusting to the rising cost of living is a recessionary mindset.”

https://www.cnn.com/2023/05/03/economy/consumer-spending-retrenching-recession/index.html

[RandomUsername]

We had two negative quarters of GDP growth… the most commonly recognized signifier for a recession… and then they changed the definition of a recession.

[papy]

@papy

The difference between a recession and a recession mindset…

@RandomUsername

We had two negative quarters of GDP growth… the most commonly recognized signifier for a recession

In my sciencing days we differentiated between clinical significance and practical significance.

If it feels like a recession, then it is functionally a recession–even if it doesn’t meet the operational definition criteria.

At the same time, I despise recession fear-mongers, who influence the recession mindset.

[lake]

Some consumers are retrenching, others are not.

Some are more affected by inflation and fears of recession than others.

I have always seen my online sales affected by the stock market. A function of the buyers for what I sell.

April was a very good month for me, with the stock market drifting, my less affluent buyers spent early, and my average sale amount was up for the last 3 weeks of the month, and # of sales for the month were up.

May is starting with decent sales, but many of them are returning small ticket buyers. I am hoping my more affluent buyers will not be affected by the recent bad days at the market.