Shoppers Are Back
Although Americans spent more time and money shopping on Black Friday than they did the year before, certain figures indicate that they were also cautious with their spending as inflation put a strain on their wallets.
Related reading
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.
U.S. Retail Sales Smash Estimates
Retail sales increased more than expected in January, despite rising inflation. According to the Commerce Department, sales for the month rose by 3%, exceeding the expected rise of 1.9%.
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.
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.