Quote from Savings Beagle on June 22, 2023, 9:37 am

The U.S. economy's been more resilient than many thought it would be considering the various headwinds it's faced.  High prices on everything may be starting to take their toll, though.

In the piece, "Restaurants Face Unappetizing Slowdown as Consumers Buckle Amid Two-Year Inflation Storm," some analysts are calling for a slowdown...at least in the restaurant industry...in the second half of 2023.  If consumers are cutting their dining out expenses, then can other expenditures be far behind?

The stats provided in the piece, including a lengthy stretch of negative real wage growth, decreased savings rate and an increase of revolving consumer credit, you would think, would make the case for just that.

The piece ends, "With record credit card debt load and highest interest payments in years, plus depleted savings, oh yeah, and we forgot, the restart of student loan payments later this year, this all may signal a consumer spending slowdown at causal diners while many trade down for McDonald's value menu. Even then, we've reported consumers have shown that menu items at the fast-food chain have become too expensive. 

So where do consumers trade down from McDonald's? Well, we've got that answer here: "Dollar Tree Dinners": TikToker Goes Viral After Showing People How To Cook For $35 A Week. "

A personal anecdote to the slowdown view.  My wife and I dined out this past weekend and were surprised to see no wait and empty tables at the normally full mid-level restaurant we went to.  In fact, during what would be considered the dinner rush period, there never was a wait.  A quick drive by a few other local restaurants showed parking lots with plenty of available spaces.

Maybe the consumer has hit the wall with paying higher prices?

What do you think?  Are you seeing similar slowdowns at restaurants in your area?  And how about spending patterns?  Are you cutting back?