I NEED JUST AN OPINION

WASHINGTON, Aug 10 (Reuters Breaking views) - The United States may be o

growing at ine same pace as last vear, and most Americans expect neir finances to enter stay ine same or get worse, according to a closely warcnec

Household budaets are finally resisting rapidly rising costs. Average weekly wages have climbed 3.5% over the past 12 months. including the most recent figures released on Thursday by the U.S. Bureau of Labor Statistics, exceeding the 3.2% rise in prices over the same span. Shopping hasn't picked up at the

https://www.reuters.com/breakingviews/american-price-elasticity-stretched-limit-2023-08-10,

1/13

9/14/23, 10:36 PM

American price elasticity stretched to the limit I Reuters

same pace, however. Spending grew just 2.4% in the vear through June, nearly matching last vear's rise. Meantime, the S2.1 trillion Americans amassed

during the pandemic is now exhausted, signaling a slowdown into 2024, Capital Economics researchers said in July.

For makers of household staples, the trend shouldn't present a problem. Procter & Gamble (PG.N) sold 1% less of its Tide, Pampers and other goods in the second quarter, but 7% price hikes more than made up for the dip. Similarly, PepsiCo's (PEP.O) 14% increase in North American prices of Mountain Dew.

Tropicana orange juice and other beverages cost it 4% in quarterly sales. Strong appetites for Oreos and Wheat Thins lifted Mondelez International's (MDLZ.O) sales 2% in the United States, Canada and Mexico, even as prices climbed 10%

As shoppers shell out more to stock their pantries, indulgences will suffer. Darden Restaurants (DRIN), owner of eateries like Olive Garden and Capital Grille suffered a 1.9% dip in sales between April and June from a vear earlier. Chief Executive Ricardo Cardenas warned that "price sensitivity" could sting further Starbucks (SBUX.O) boss Laxman Narasimhan also cautioned last week that "pricing strengths" will weaken. Luxury giants LVMH (LVMH.PA) and Kering

ICKIETALreported sOnter U.s. sales growtn throughout the quarter as inflation curbed demand tor champagne and nandoads.

There are anomalies. Americans are splurging on summer travel, for example. Delta Air Lines (DAL.N) and United Airlines (UAL.O) have notched record earnings, while Marriott International's (MAR.O) North American room prices and occupancies rose a respective 4% and 1% in the three months through June

If pay continues to outpace inflation, as it did in both June and Julv, purse strings could loosen. But the recent uptick follows a 26-month streak

Ambani's retail backers dispel only a little doubt Breakingviews . September 14, 2023 . 10:30 PM GMT-4 . 5 min ago Mukesh Ambani is on a mission to crystallise a golden valuation for India's largest retailer. Asia's richest man is raising fresh funds to trim debt and expand the shopping unit of his flagship Reliance Industries . Recent commitments from KKR and Qatar signal a $100 billion pre-initial public offering valuation for the subsidiary. A few more endorsements from new investors would help to dispel lingering doubts around the entity boasting 18,500 stores and brands from Abraham & Thakore to Hamleys