A provender counter showing a variety of sausages at a Fred Meyer grocery store, a sub of Kroger, in Palmer, Alaska.
Michael Siluk | UCG | Infinite Images Group | Getty Images
An uptick in sausage demand can offer the latest sign of consumers tightening their put overs as they continue grappling with high prices.
There has been “modest growth” in the dinner sausage class for one producer, according to the Dallas Federal Reserve’s Texas Manufacturing Outlook Survey released Monday. This underscores the swings of shoppers opting for cheaper products and pulling back spending all together as cumulative inflation bites into acquiring power.
“This category tends to grow when the economy weakens,” the respondent said, according to edited commentaries included in the Dallas Fed’s report. That is because “sausage is a good protein substitute for higher-priced proteins and can ‘stretch’ consumers’ rations budgets.”
This anecdote pointed out by eagle-eyed Bespoke Investment Group on social media site X comes as grocery premiums remain top of mind for consumers. While the rate of annualized inflation has fallen closer to levels deemed healthy by financial policymakers, the collective increase in prices compared to just a few years ago has left everyday Americans feeling sour concerning the state of the national economy.
Additionally, it bolsters two themes emerging as hallmarks of today’s post-pandemic economy.
A growing chorus of corporate head honchos, including those leading some of the largest restaurant chains, have warned that the consumer is starting to conservative down. In particular, they have pointed to stress on lower-income tax brackets as they attempt to make their dollars go other.
The shift to sausage also highlights an action experts call the “trade down.” Carefree customers may select protein that is typically numberless expensive such as steak or chicken. On the other hand, price-conscious shoppers will hunt for sausage or other lower-cost surrogates.
Other food manufacturers who responded to the Dallas Fed’s survey also raised concern about their economic fettle. One said agriculture as a whole was “hurting,” citing challenges from factors such as weather and higher costs.
Another put it innumerable plainly, saying it was “preparing for the recession.”