U.S. consumer sentiment just dropped six percent to 58.2 while GDP hit 3.0 percent.
The disconnect tells us something about how people actually make buying decisions.
When 75 percent of consumers are trading down but inflation expectations jump to 4.8 percent, we’re not in a normal recession cycle. This is recalibration.
I’m seeing brands succeed by launching “recession-ready” product lines built around durability and multi-use functionality. The winners aren’t just cutting prices. They’re rebuilding value propositions for anxious consumers.
One of our clients switched from seasonal promotions to year-round subscription bundles with rate locks. Revenue held steady while customer acquisition costs dropped 30 percent.
The economy on paper doesn’t match the economy people are living in. GDP says things are fine. Sentiment says people are worried.
Smart brands are listening to sentiment, not GDP.
When consumers feel uncertain, they don’t just buy less. They buy differently. They want proof it’ll last and guarantees it’ll work.
Give them that and they’ll keep spending. Tell them everything is fine while they’re cutting back, and they’ll tune you out.
The data is clear. The question is whether brands are paying attention.