Sandy Magny is planning to bring her daughter to West Palm Beach (Florida) this summer. airfares are surging.

Magny wants to be able to visit her family, even though it won’t come cheap. She is a 40-year old paralegal who lives in Manhattan’s Bronx.

“I take lunch more often,” she stated. I could even make coffee in the workplace.”

Magny is just one of many millions who are beginning to change where their dollars go following two years of Covid-19. At the moment, consumer prices are rising fastest clip in four decades. The cost of everything from housing to a latte is on the rise, begging the questions: When — and where — will consumers cut spending?

Companies are already seeing the effects of higher prices as they pass them on to their customers.

AmazonThe company’s latest quarterly sales increased at the slowest paceSince 2001’s dot-com bust. NetflixThe first quarter saw the loss of subscribers more than a decade. Videogame maker Activision BlizzardHome appliance manufacturer giant WhirlpoolAnd 1-800-FlowersAll reported lower sales for the quarter.

Companies can also be found at FordTo McDonald’sTo Kraft HeinzTo United AirlinesReports indicate that they are resilient demandAs consumers, we must keep spendingEven though prices are higher

Some executives are on edge due to changes in consumer behaviour.

“We believe the consumer will spend,” Macy‘s CFO Adrian Mitchell saidJP Morgan Retail Round-Up. But are they likely to spend on the discretionary products we sell or on travel or an airplane ticket to Florida? 

Coca-ColaJames Quincey, CEO told CNBCLast week, customers decided not to “swallow inflation endlessly”. 

The Commerce Department measured that consumer spending increased by 1.1% in March, seasonally adjusted. According to Bank of America data, spending is still strong for low-income households earning less than $50,000 per year. These data do not account for households who don’t have cards.

However, consumer confidence (a measure of consumers’ feelings about market conditions, reported by The Conference Board) fell in April.

Anna Zhou from Bank of America, an economist in America, said that there are not many signs of slowing down, despite market worries.

A reason may be the money people saved during the pandemic. On average, low-income households have $3,000 in their savings and checking accounts – nearly double what they had at the start of 2019, according to the Bank of America’s internal data. Zhou stated that this buffer has allowed consumers to have a cushion, even though they are spending more at the grocery store and gas station.

Many customers aren’t only spending, but are finding themselves increasingly willing to splurge, whether on a higher-end pair of LeviJeans or first-class seats on a Delta Air Lines flight.

Apple announced Thursday that it has a “record level of upgraders”In the initial three months, users chose to buy the more expensive iPhones. But they were also concerned about China’s lockdowns. Car-seekers shouldn’t be afraid that automakers are raising prices in order to account for tight inventories due to global supply chain problems.

FordJohn Lawler, Chief Financial Officer, said that, even with price hikes, there is still a strong market for new products. The range from the Maverick pickup which costs around $20,000 to the Mustang Mach-E cross-country electric vehicle, which can go up to $60,000. The 2022 model year is already full.

United, DeltaAnd Southwest AirlinesAre predicting 2022Profits are due to the seemingly endless demand of customers following two years of severe pandemics, for both leisure and business travel. Even more, their staffing limitations are holding them back from flying.

The average round trip domestic airfare to the U.S. for travel between Memorial Day Day & Labor Day cost $526. That’s more than 21% less than 2019, according Airlines Reporting Corp. data from travel agencies.

“The market is experiencing the highest demand in over 30 years of service.” United AirlinesIn an April 20 statement, Scott Kirby, CEO of Scott Kirby Inc. earnings release.

Levi Strauss & Co. Chief Executive Officer Chip Bergh told CNBC last month that in spite of rising prices, consumers weren’t trading down to less-expensive denim. Levi reiterated its fiscal outlook for 2022. It expects revenue growth of between 11% to 13% compared with the previous year. 

However, signs suggest that consumers’ appetites may be at an end.

Adobe Analytics reports that domestic U.S. airline bookings fell by 2% in April’s first two weeks. This is the first drop over this time period since 2011. Although bookings rose by 12 percent in March 2019, customers spent 28% more on these tickets.

Black Box Intelligence reports that March saw a 1.7% drop in restaurant traffic. The largest jumps in restaurant sales were seen for fine dining and upscale casual restaurants, as well as family-friendly dining. However, these segments still struggle to recover from the pandemic lows.

Jodi Klobus is a mother of three, grandmother to four, and a retired New York City cop officer. Jodi used to dine out two times a week. They now eat twice monthly, despite the fact that all their food and other necessities are more expensive.

Klobus stated, “I feel it within the pocketbook.”

There are also other risk factors that can impact consumer spending. Rents marching higherHowever, property taxes still haven’t caught up. skyrocketing home values.

The Federal Reserve aims to combat inflation. raising interest rates. This translates into higher borrowing costsHomebuyers: credit card users.

The fourth quarter saw a $52 billion increase in U.S. credit cards balances, which was the largest quarterly jump in New York Fed data for 22 years. However, they remain down $71 billion from 2019.

The U.S. credit card default rates increased to 1.62%, from a low of 1.48% for more than three decades in the second quarter last year. This is still a long way from the peak of 6.6% in 2009’s first quarter, which was the tail-end the Great Recession.

Zhou, a Bank of America economist said that “consumer spending should be resilient” for the current year. “For next year, it’s a little less certain – and certainly toward the second half of next year, that’s when risk of more of a slowdown in consumer can arise.”

BoeingTuesday’s CEO Dave Calhoun said that there is a recovery in demand for aircraft from airlines due to the rebound of travel demand. It’s not clear if Americans will continue to spend on their trips over the coming months or if they will cut back.

Calhoun told CNBC’s “Squawk on the Street” that “that second year when inflation starts taking a toll on consumers’ pockets, that’s when these numbers really start to matter to us.”

Many consumers like Cindy Maher (58), a leader development consultant firm owner and Bloomfield resident, are content enough with their current spending patterns.

She stated, “I don’t cut back,” “I’m just complaining about the prices.”

Maher claimed that she had seen $7 loaf breads and it cost $70 to top up her car’s tank. However, Maher said she could absorb the costs in her family of two.

She stated, “My heart is broken for the low-paying workers.”

–CNBC’s Amelia LucasAnd John RosevearThis article was contributed by.