Makers of refrigerators, boats and teeth straighteners say US consumers are no longer buying big-ticket items

Makers of refrigerators, boats and teeth straighteners say US consumers are no longer buying big-ticket items, per Bloomberg.

Manufacturers of various goods, from refrigerators to dental aligners, are reporting a shift in consumer behavior, indicating a reluctance to make significant purchases, contrary to broader economic spending trends.

This cautious approach toward buying large-ticket items, such as vehicles and appliances, poses challenges for the US economy, which has largely relied on consumer spending to stay afloat amid inflation and interest rate challenges. Whirlpool, known for Maytag appliances, notes a decline in discretionary purchases for new machines in renovations or homes, contributing to softer demand and increased industry-wide discounting. Align Technology, specializing in teeth straighteners, experiences lower-than-expected demand for its Invisalign brand, with consumers delaying orthodontic procedures in a challenging macroeconomic environment.

Similar patterns emerge in pharmaceuticals, where AbbVie's Botox sales fall short of estimates, and Harley-Davidson faces weakened motorcycle sales in North America amid higher borrowing rates. Despite these corporate insights, broader economic data, such as the reported 4.9% GDP growth in the third quarter, suggests robust consumer spending.