2024-08-26 21:08:48
The meat counter at Kroger Co.-owned Fred Meyer grocery store in Palmer, Alaska, is filled with a variety of sausages.
Michael Siruk | UCG | Universal Images Group | Getty Images
The rise in demand for sausages may be the latest sign that consumers are tightening their belts as they continue to cope with high prices.
One producer saw “modest growth” in the dinner sausage category, according to the Federal Reserve Bank of Dallas. Texas Manufacturing Outlook Survey The data, released on Monday, highlights a trend among consumers to opt for cheaper products and spend less as accumulated inflation erodes purchasing power.
According to editorial comments in the Dallas Fed report, respondents said: “When the economy is weak, this category tends to grow.” This is because “sausage is a good alternative to higher-priced proteins and can ‘save’ consumers’ food budgets.”
The eagle-eyed Bespoke Investment Group pointed out this anecdote On social media site X Food prices remain a top concern for consumers. Although annual inflation has fallen to levels that economic policymakers consider healthy, overall higher prices compared with a few years ago have left average Americans unhappy with the state of the nation’s economy.
Moreover, it supports two hallmark themes of today’s post-pandemic economy.
A growing number of business executives, including the heads of some major restaurant chains, are warning that consumption is starting to slow, pointing in particular to the huge tax pressures facing lower-income groups as they try to get more bang for their bucks.
The shift toward sausages also highlights a behavior experts call “downsizing.” Carefree consumers may opt for typically more expensive proteins, such as steak or chicken. Price-conscious shoppers, on the other hand, will seek out sausages or other low-cost alternatives.
Other food manufacturers that responded to the Dallas Fed survey also expressed concerns about their economic conditions. One said agriculture overall was “taking a hit,” citing challenges from factors such as weather and rising costs.
Another official put it more bluntly, saying it was “preparing for a recession.”
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