Depending on where you look, it is possible to get a different perspective on the health of the US consumer. McDonald’s (US:MCD) and Starbucks (US:SBUX) have both reported drops in US revenue i nthe second quarter, while Uber (US:UBER) announced strong bookings growth in both delivery and ride hailing. However, despite a few anomalies, the overall picture shows that consumers are becoming more discerning with their spending.
Fears about the US economy boiled over last week when the July jobs report was released. Non-farm payroll jobs grew by just 114,000, below the 175,000 expected by economists, and the unemployment rate increased from 4.1 per cent to 4.3 per cent.
At the end of July, company results put the continued rude health of US consumers into doubt. In the three months to June, McDonald’s US revenue dropped 0.7 per cent year on year, a significant deceleration from its 10.3 per cent growth last year. “We warned of a more discriminating consumer, particularly among lower-income households, and as this year progressed, those pressures have deepened and broadened,” said chief executive Chris Kempczinski.