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Paycheck-to-Paycheck Economy Foresees Gloom |

The paycheck-to-paycheck economy is bifurcating as inflation rages and consumers fret over an uncertain future, with one group of customers who cannot spend, and another group who won’t spend.

In the middle of it all are the retailers, who look set to be squeezed this holiday season, and beyond.

Consumers tend to open up the wallets and purses when they feel flush, just as they pull back when they don’t.  When they feel threats on the macro horizon, they cut where they can or must.

The latest PYMNTS study on what lies ahead, “Consumer Inflation Sentiment: Inflation’s Long Consumer Spending Shadow,” is sobering. Two out of every three consumers say they are “very” or “extremely concerned” about the outlook for the coming months. Eight in 10 consumers say inflation causes them to feel worried about the future. And 45% of consumers say the day-to-day struggle of paying bills has soured their view of the…

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