U.S. companies across industries are feeling the squeeze from the deepening split between lower-income and affluent consumers as tariffs pile on more uncertainty.
Executives at bellwethers such as Coca-Cola, along with toymakers, hoteliers and financial-service providers have noted how lower-income households are canceling or delaying purchases, exposing a hidden belt-tightening even as affluent consumers keep U.S. spending afloat.
"There is bifurcation in consumer behavior," said Andre Schulten, CFO at consumer goods giant Procter & Gamble, adding that while financially secure consumers are buying larger pack sizes, those living paycheck to paycheck are seeking out deals as inflation remains above the U.S. Federal Reserve's preferred 2 percent target.
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