Recent economic indicators suggest that while many economists predict a soft landing, consumer sentiment tells a different story—many believe a recession has already begun. The optimism surrounding steady consumer spending and job growth has been challenged by a significant drop in stock prices and disappointing quarterly results from major consumer brands. Companies like Mercedes-Benz, McDonald's, and Procter & Gamble have reported declining sales, signaling a shift in consumer behavior as shoppers gravitate towards discount options and store brands. Rising credit card debt and increased price sensitivity further complicate the landscape, with over 60% of consumers starting their product searches on Amazon. According to a survey by Affirm, most respondents have felt the economic pinch since March 2023 and expect the downturn to persist. Economists warn that while we may not be in a recession yet, the trajectory suggests that brands and retailers who fail to adapt may face significant challenges in the coming year.
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