People are opting to eat at home more often these days—and that could be an early warning that a recession is on the horizon.
Consumers are also buying ingredients that stretch tighter food budgets, he added, such as condensed cooking soups, broth, and Italian sauces. (Spending on discretionary items like crackers and chips declined.)
The rise in at-home cooking indicates consumers are cutting back at spending on restaurants, a further sign of belt tightening. Reduced consumer spending could shrink the gross domestic product—and two straight quarters of that bellwether declining is the textbook definition of a recession.
Demand for staple items like Campbell’s soups, sauces, and breads tends to increase during challenging economic times—as they can transform cheaper cuts of meat or vegetables (or leftovers) into new meals.
