American consumers remain among the biggest, and perhaps strongest spenders on essential and non-essential goods, however rising prices and sticky inflation are seeing overall optimism sink as their savings accounts are being drained and credit card debts start to pile up. 

Though consumer optimism may be reaching levels last witnessed in the 1980s, broader consumer inflation continues to decline with May seeing a 0.1% decline in the consumer price index (CPI), and with year-over-year inflation ending the month at 3.3%, according to the U.S. Bureau of Labor Statistics. 

While prices of goods and services may be cooling, many Americans aren’t leaving the grocery store with more in their shopping carts. In fact, many consumers now feel less positive about the current state of the economy compared to the last quarter of 2023. 

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