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Grocery shoppers are cutting back on spending, data show, a sign that Americans are hurting for cash as the federal unemployment stimulus remains on hold for most recipients.
The emerging shift in food spending comes after the $600 in weekly additional unemployment checks expired in July. It has also prompted grocery stores to bring back something customers haven’t seen much of during the pandemic: discounts.
Lump-sum stimulus checks consumers received in the spring and the extra unemployment money for people who lost their jobs in the coronavirus pandemic have helped shore up consumer businesses amid widespread shutdowns and millions of workers claiming unemployment.
While consumer spending rebounded between May and July following a plunge earlier in the spring, analysts say that a broader pullback on grocery spending could mean lower sales for more discretionary items such as clothes and cars.
