Holiday Sales Expected to Hit Record High Despite Economic Challenges
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Holiday sales are forecast to hit a record high this year despite economic challenges like high inflation, rising interest rates, and resumed student loan payments.
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Shoppers are expected to spend $957B-$966B this holiday season, up 3-4% from 2021. This would be the highest holiday spending on record.
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Growth is slower than recent years due to less pandemic stimulus, but closer to pre-pandemic rates of 2-5% yearly.
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Consumers remain willing to spend on priorities, but may grow more cautious later as economic headwinds continue.
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Retailers are cautious about consumer spending for the rest of 2022 due to student loans, gas prices, interest rates impacting budgets.