Retail spending dips as holiday sales bite into inflation
NPR Online NewsNov 22, 2022
The Facts
The US Commerce Dept. on Thursday reported that November endured the biggest decrease in retail sales in 11 months after sales had surged in October, likely due to an early holiday shopping season.
Consumer spending, though, remains supported as unemployment claims fell by the greatest amount in five months last week amid a tight US labor market.
The Spin
Establishment-critical narrative
Reports like this are why no one should get overly excited when the administration announces inflation is easing. There are major flaws in the economy as inflation is still high – forcing consumers to spend more on staples and less on luxury items – and fears of a recession loom over every purchase. There’s still a lot of work to do before the administration can boast about having the US economy back on its feet.
Pro-establishment narrative
This report has to be taken into greater context. It appears the holiday shopping season actually began in October — as consumers adjusted to earlier retail discounts — meaning the past two months must be considered together. Meanwhile, service and experience industries attracted more spending as people looked to travel and dine out after being confined during the pandemic.