Holiday Sales Growth Slows as Shoppers Tighten Belts Amid Cooling Inflation
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Holiday sales growth is forecast to slow to 3.3% this year from 6% last year, below pre-pandemic levels, due to cooling inflation and consumers tightening belts.
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Black Friday and Cyber Monday sales totals were strong, but dollar sales growth slowed compared to 2021, showing shoppers are finding cheaper alternatives.
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Prices are lower across categories tracked by Adobe, so spending growth is driven by demand, not just higher prices.
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Holiday sales indicate consumer spending trends, which accounts for over two-thirds of GDP, but aren't necessarily predictive of the whole economy.
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Economists expect economic growth to slow in 2023 but don't forecast a recession due to resilient consumers and low unemployment.