Shoppers look to cut back on spending

UC economist tells WCPO that consumers have tapped into savings for purchases

Shoppers are looking to decrease their spending following a purchasing boom in recent years, WCPO reported.

Michael Jones, PhD
Assoc Professor
Academic Director, MAECON
LCB-Economics

Michael Jones, PhD, assistant professor of economics

August tends to be one of the biggest shopping seasons of the year as families buy back-to-school items and Labor Day sales begin. But retailers such as Home Depot and McDonald’s have reported slowdowns in their business, potentially signaling that consumers are cutting back on non-essential purchases.

Michael Jones, PhD, assistant professor of economics in the University of Cincinnati's Carl H. Lindner College of Business, said inflation has reduced the amount of money that individuals have to spend.

“Consumer spending is actually outpacing income,” Jones said. “So where does that increased spending come from? It has to come from savings.”

See more from WCPO.

Featured image at top: A man shops for snacks. Photo/Dollar Gill via Unsplash

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