PARIS (Reuters) – U.S. consumer demand remains strong even though households are becoming more price sensitive, Richmond Federal Reserve Bank President Thomas Barkin said on Friday.
“Real-time indicators such as credit card spending still look strong but not frothy,” he told reporters on the sidelines of a conference at the French central bank.
He added that the non-consumer housing sector and other interest-sensitive sectors are among the few areas that are witnessing weakness.
While Parkin’s brand contacts also report strong growth in demand, consumers are becoming more responsive to promotions, looking for cheaper private label products and shopping at low-cost retailers.
“When you talk to consumer product manufacturers, when you talk to retailers, you hear about a customer who is still spending but making their choices in the context of higher prices,” Parkin said.