The impact inflation is having on consumers’ wallets has been well documented, with estimates suggesting the average U.S. household will spend an additional $5,200 this year compared to 2021. But how is this environment of soaring prices affecting businesses—large and small? Shoppers stopped to take a breath in February as consumer spending rose in February at a slower pace. Personal consumption expenditures, or PCE, edged up 0.2 percent to $34.9 billion, falling short of the market estimate of 0.7 percent. However, when adjusted for inflation, spending tumbled 0.4 percent, according to data from the Bureau of Economic Analysis (BEA). Following an impressive January, customers might be a little bit more cautious about exhausting their pandemic-era pent-up savings amid a surging consumer price index (CPI). And this could eat into corporate revenues. But it is not only consumer trends that are hurting business operations throughout the marketplace. Inflation is top-of-mind for …
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