Throughout 2022, investors have grappled with a drastic change in the U.S. economic environment. Pandemic-era stimulus has mostly dried up, and the Federal Reserve has embarked on an aggressive campaign to fight inflation, which recently hit a 40-year high. The record-low interest rates of 2020 and 2021 are rapidly disappearing in the rear-view mirror. 

There are some early signs that these pressures are easing, but according to Snap's (NYSE: SNAP) second-quarter earnings report, there's been a noteworthy decline in advertising demand. This points to a falling level of confidence among businesses in the strength of the consumer. Here are two key takeaways from the social media company's report, which it released on July 21.

Companies that rely on advertising for revenue are among the most sensitive to changes in the economy. When slowdowns occur, businesses tend to cut their marketing budgets because they feel the returns on that spending will be poorer due to consumers tightening their belts. 

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Source Fool.com