Holiday Spending to Slow as Shoppers Pull Back Amid High Prices and Economic Fears
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Consumers are pulling back on spending ahead of the holidays due to higher prices, costlier credit, and economic uncertainty. Retailers are seeing more selective shopping and deal-seeking.
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Sales growth is expected to slow this holiday season. Shoppers are projected to spend 3-4% more than last year, down from 5.4% growth in 2021.
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Job growth is slowing and consumers feel less confident in the economy. Credit card debt has risen rapidly as shoppers rely more on borrowing.
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Interest rates have climbed significantly, making credit card debt more expensive. Delinquencies on payments are increasing.
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Consumers have a bleak outlook, with low consumer sentiment. Shoppers are focused on necessities and wary of prices, interest rates, and global conflicts.