The last decade has been turbulent, yet despite all odds, consumer spending has remained relatively unshakable. Americans have been holding up the economy on weary shoulders amid a pandemic, the AI boom, multiple wars, and inflation.
Consumer sentiment and spending habits are tracked closely by Wall Street and the Fed for any sign of weakness that might signal consumers are finally at their breaking point, potentially triggering a recession. May 2026 set a historic low for consumer sentiment, the new dip primarily driven by the Iran War and supply disruptions in the Strait of Hormuz.
Corporations are starting to intuit that their customers might be reaching their limit. Kraft-Heinz CEO Steve Cahillane recently said in an interview noted that they’re seeing consumers run out of money at the end of the month, while McDonald’s CFO Ian Borden noted that higher gas prices are hitting lower-income households especially hard. Planet Fitness, a budget-friendly gym chain, experienced the biggest stock drop on record after slashing its revenue outlook.
What remains to be seen is if corporations will start to lower prices to help take on some of the burden. Kraft-Heinz claims to be lowering prices and prioritizing smaller size products. Planet Fitness is canceling planned membership increases. Yet, according to Attain data, prices across most categories only continue to increase. Consumers are starting to take notice, and break habits even when they don’t necessarily want to.
For example, the ubiquitous use of food delivery apps that skyrocketed during the pandemic is steadily on the decline. In May of 2025, the number of orders began trending downward while the median transaction amount continued to climb. The median transaction amount has risen nearly 21% in the last 24 months, while the average number of transactions per month has fallen by 15%. As one Reddit user described it, “buying a taxi for a burrito is too expensive.”
Consumers are reporting cutbacks on categories across the board, from fast food, red meat, cereal, concert tickets, and streaming subscriptions. Over the coming weeks, The Breaking Point will dive into purchase categories to show exactly where Americans are pulling back and where they're holding firm. The first piece in the series launching this Thursday will dive into fast food and QSR, one of the first categories to be heavily criticized for rising prices and diminishing quality.
