The latest results and forecasts from retailers indicate that U.S. consumer spending is under stress due to increased living costs and existing debts, posing challenges for the retail sector during the back-to-school and holiday seasons.
Holiday sales in the United States are expected to grow at their slowest pace in five years, as consumers are cautious due to dwindling savings and concerns over the economy, with online shopping expected to be a bright spot.
Holiday retail sales are expected to increase in 2023 despite slowing growth, with inflation moderating and e-commerce playing a significant role.
US retail sales, excluding automotive, are expected to rise by 3.7% over the holiday shopping season, indicating a return to pre-pandemic levels of holiday spending, driven by a more normal inflation environment and consumers' willingness to spend on experiences, electronics, and dining out.
