Consumers Show Resilience But Plan to Cut Back as Economic Pressures Mount
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Retail sales grew steadily for 6 straight months, showing consumer resilience despite high inflation and interest rates.
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Individual spending sentiments show 92% of people reduced spending in the past 6 months, especially middle-income households.
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Over 75% of consumers plan to cut back on non-essential holiday spending due to economic pressures.
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A slowdown in consumer spending would support the Fed's goal to control inflation.
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Job growth, low unemployment, wage gains have driven consumer spending, but may not be sustainable as stimulus funds diminish.
