Retail spending dips as holiday sales bite into inflation
NPR Online NewsAPR 2023
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.
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.