After a brief spurt of spending in May (thanks, no doubt, to economic stimulus checks), it appears that consumers are starting to cut back again With gas prices what they are, many are spending less at the store and going back to the old “recession diet.” Indeed, it appears that purchases that would have been considered “basic” not too long ago are now considered “unnecessary.”
The Street reports on information about consumers and their spending habits:
Overall, 55% of consumers said they have started to cut back on living expenses. Not surprisingly, those in lower income brackets are being hit hardest. About …read more

Not too long ago, I wrote about the “recession diet.” While we may not technically or officially be in a recession, many people are nevertheless feeling the pinch. And with food prices rising, it is no surprise that Spam is seeing an increase in sales (hat tip: Miki at Leadership Turn).
Yep, items that are considered “downgrades” are seeing a rise in popularity as households try to squeeze the most of their hard-earned dollars. Discount stores are seeing some success as well with people turning to the off-brands that are found at dollar stores and similar businesses.
Are you buying things differently …read more

One of the trends in personal finances that is coming to light right now is the “recession diet.” This is a term that describes consumer behavior in times of economic turmoil. Whether or not we are in a recession is beside the point. Consumers are worried about their personal finances, and that affects their decisions. Calculated Risk describes the “recession diet”:
In economics, “inferior goods” doesn’t refer to the quality of the goods, instead it refers to goods where demand changes inversely with income. As incomes rise, people buy less of the inferior good. But as incomes fall, they buy more.
This …read more