The Wall Street Journal: Under the impact of Trump’s policies, American consumers across various income levels are becoming more cautious.
Taking low-income consumers as an example. Walmart CEO Doug McMillon stated in an interview at the Chicago Economic Club at the end of February that 'budget-conscious' consumers are exhibiting behavior under economic pressure: they are buying smaller packages of products towards the end of the month because 'the money runs out before the end of the month.'
McDonald's stated in its recent earnings call that the fast-food industry has started the year 'slowly,' partly due to weak demand from low-income consumers. According to McDonald's data, sales to low-income consumers in the entire fast-food industry in the U.S. fell by double-digit percentages year-on-year in the fourth quarter.
The situation in the high-end market is also not optimistic. According to an analysis of credit card transaction data by Citibank, American consumer spending in the luxury goods market (including high-end department stores and online platforms) fell by 9.3% year-on-year in February, more severe than the 5.9% decline in January.
$BNX