Corporations say That Spending is Still Strong but Starting to Wane
By: Andruw Lin
Big corporations like Apple, Walmart, and Amazon have all recently tried to address the trend of the economy. In Silicon Valley, big tech companies like Google and Apple have said that their customers' spending generally beats expectations, although there are some small signs of customers' spending slowing down. Mastercard also said that spending is steady among the high and middle incomes but slowing among the low-income customers.
“As high inflation has continued and consumer sentiment has deteriorated, customer demand within the consumer electronics industry has softened,” Best Buy chief executive Corie Barry said in a statement. This is very likely because raising gas and food prices have caused less money for customers to buy fewer electronics and clothes. “There isn’t a wholesale drop in consumer spending, said analyst Brian Yarbrough at Edward Jones, but rather mixed results in different areas.” Low-income customers are shopping for more daily necessities rather than for entertainment, electronics, and clothes.
Companies have also slowed their hiring processes, and some companies like Google have told their employees that they may have to do more work with fewer resources to work with. Amazon has also said that “We will continue to add head count,” Amazon Chief Financial Officer Brian Olsavsky said, “but we’re being very mindful of the economic conditions that
Could present itself.”
Some Americans have said that it is a new normal and that they can’t afford to complain and they just have to adjust.
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