While forecasts can have short shelf lives, being overtaken by unforeseen events, there’s no question that the U.S. economy and American households have been buffeted by COVID-19 shutdowns and illnesses, patches of job insecurity despite low unemployment rates and record price inflation only partially offset by wage increases. In addition, the Federal Reserve’s ongoing efforts to curb inflation through historic increases in its benchmark interest rates have thrown a curveball at stock market performance and real estate sales. Such factors have left the U.S. dollar problematically strong for global trade prosperity, and the U.S. economy problematically fitful for business investment or consumer spending.
These effects, including headline-making white-collar layoffs in tech and other big business sectors, have had a chilling effect even among the more prosperous households who have historically and increasingly accounted for a disproportionate share of pet industry spending. That U.S. consumers are facing hard, belt-tightening and uncertain times, including in job and housing situations, has already made a dent in national pet ownership levels and pet care spending levels, and will likely continue doing so for the near future.
