Consumers Defy Expectations with Resilient Spending Despite Rate Hikes and Recession Fears
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Consumer spending has remained strong in 2022, defying expectations of an economic slowdown. Retail sales and holiday spending are up.
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The economy grew 4.9% in Q3 2022, faster than expected. The job market and consumer demand are resilient.
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The Fed has raised rates aggressively to combat inflation, but the full effects on the economy are still playing out.
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Holiday spending forecasts are mixed. Some expect a record Halloween and Christmas, while others foresee the weakest growth since 2012.
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Retailers are careful not to overstock inventory amid economic uncertainty. Wealthier consumers keep spending while lower-income shoppers pull back.