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Another sign of weakening consumer spending Restaurant spending fell by 3.9% year-over-year in July, the largest drop since 2020. This sharp decline follows a 1.9% increase in June, highlighting a sudden shift in consumer behavior. Food inflation continues to be a major issue, with fast food prices alone rising 31% over the past four years. At the same time, over $2 trillion in excess savings have been depleted in just two years, adding further pressure on consumer spending. Dining out is increasingly becoming a luxury.
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