Posted 1/17/2024, 1:58:00 PM
Holiday Shoppers Defy High Prices, But Growing Debt Looms Over 2023 Spending
- Retail sales rose 0.6% in December, exceeding expectations and showing consumers kept spending during the holidays despite high inflation and interest rates
- Sales increases were seen in categories like cars, grocery, building materials, clothing, and online shopping
- However, consumers pulled back spending at gas stations, health stores, electronics stores, furniture stores, and restaurants
- Solid job market and big wage gains have buoyed spending recently, but higher costs could make consumers more cautious going forward
- Americans relying more on credit cards to cover necessities, with card debt and delinquencies rising to concerning levels