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Increased demand for sausages may indicate potential weaknesses in the economy


The latest Texas Manufacturing Outlook Survey from the Dallas Federal Reserve indicates a modest growth in the dinner sausage category, signaling that consumers may be tightening their belts in the face of high prices. Sausage is seen as a good protein substitute for higher-priced proteins, allowing consumers to stretch their food budgets during tough economic times. This trend reflects a growing shift towards cheaper products as inflation continues to impact purchasing power.

The rising demand for sausage also underscores the broader concerns about grocery prices and the overall state of the national economy. Corporate executives have noticed a slowdown in consumer spending, especially among lower-income tax brackets who are feeling the squeeze. This behavior, known as “trading down,” involves opting for lower-cost protein alternatives like sausage over more expensive options like steak or chicken.

The survey also revealed that other food manufacturers are facing economic challenges, with some expressing concerns about the impact of factors like weather and rising costs on the agriculture industry. Overall, there is a sense of preparation for a potential recession among some respondents. This all points to a growing awareness of the need to be more budget-conscious and make cost-effective choices in today’s post-pandemic economy.

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www.nbcnews.com

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