CEOs warn that US consumers are cutting back on spending

Top CEOs are warning that rising fuel costs and geopolitical instability are eroding consumer confidence. McDonald’s head Chris Kempczinski noted on the earnings call that it “may be getting a little bit worse.”

While McDonald’s delivered strong quarterly results, Kempczinski agreed that the current US consumer environment remains challenging for businesses.

Whirlpool Corp. reported a 15% hit to industry demand following the Iran war. The washer-dryer maker called it a “recession-level industry decline.” The appliance maker said quarterly revenue fell nearly 10%, while North American sales dropped more than 7%.

Other major chains, including Domino’s, Chipotle, Applebee’s, and IHOP, also reported softer sales in March.

Eyewear maker Warby Parker noted that youngsters are pulling back on spending, mainly due to unemployment and student debt.

Meanwhile, the average gas prices have climbed to $4.56 a gallon, the highest since July 2022.