Experts say a decline in consumer spending is one sign of a possible recession. So we talked with people here in Amarillo, who are already cutting back to stay afloat.
"Oh man when I saw the price of eggs! It was around Christmas time, I was like did the chickens go on strike or something and milk has gone up, so yeah I still buy it but not as much," says Marilyn Jackson an Amarillo Consumer.
Other consumers like Doug Smalley are cutting back on everything....and eating less.
"We got three teenagers and that's like feeding seven horses, so it's really hard, you have to make cut backs everywhere you can," said Smally
Not eating out, is one of those cutbacks, for many Amarillo residents. A local restaurant says they are feeling the effects. They say their sales are down about 8-percent compared to this time last year.
"They cut out the restaurant of course it cost a little more to spend the money at the restaurant when you can go to the store and buy enough to last you a couple of days instead of that one sit down meal. said Denny's General Manager Bruce Wilson.
Wilso says the restaurant has scaled back their menu and increased prices.
"Overall our percentage will be about a 1 percent increase and that's gonna offset for the transportation cost to get the product to our restaurant."
Which means you will pay about a nickel more for coffee and about a dime more for beef items.
Wilson says the slow in business is common in January and hopes things return to normal soon.
"I'm hoping that in the recession we're kind of in right now that we break out of that and we start spending more money and start having more money to spend."
As for Smalley, he says his waiting for the wage increases that the state is implementing so he can afford to spend more.