Luxury Sales Cool
Recent credit-card data indicates a notable slowdown in U.S. luxury spending, especially among younger consumers who are feeling the impact of inflation.
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Consumer Spending Eases
In October, Americans curtailed their spending, and inflation subsided as the economy shifted gears from a vigorous third quarter, according to analysts.
China's Gradual Recovery
Official figures indicate that China's retail sales contracted by 0.2% in 2022, a stark contrast to the 8% growth recorded in 2019.
Households Are Not Cooling Down
By now, consumers were expected to reduce their spending for several reasons. Interest rates have risen, inflation remains high, pandemic-related savings have dwindled, and the labor market is showing signs of cooling.
Travel Is Still Up Despite Recession Fears
Persistent inflation and higher interest rates have put a strain on many households, causing consumers to be cautious about certain expenses like home improvement projects and apparel.