Current data shows that the economy is actually doing quite well. But the reality among consumers feels very different, and that affects spending decisions.

Dr. Mary Kelly, an internationally renowned economist, U.S. Navy veteran and CEO of Productive Leaders, said high costs due to inflation, trade conflict with countries like Canada and slow wage growth are putting the squeeze on budgets. In the meantime, the Middle East, China and Russia continue to pose a concern for North America and Europe.

In this episode of Promo Insiders, Kelly, a returning speaker at this year’s ASI Power Summit, to be held Oct. 25 to 27 in San Diego, shared a few insights on factors presently affecting consumer sentiment and where businesses should be paying close attention.

Recently, Kelly went to brick-and-mortar retail locations to scope the activity, what she called “boots-on-the-ground research.” She noticed that buyer traffic was good, as were people eating out and traveling. “That’s important because consumer spending is 70% of our GDP,” she said. “But many households are spending with less confidence and a smaller financial cushion. They’re dipping into their credit cards. … [But] we need our buyers to be smart long term.”

Register here for the ASI Power Summit, to be held Oct. 25 to 27 at the Fairmont Grand Del Mar in San Diego, CA.