Retail sales increased nearly 6% in December with total holiday sales (Nov/Dec) rising over 5% above 2022. Consumer sentiment increased 13.7% in December, erasing declines from the previous four months, driven chiefly by expectations of improvement in U.S. inflation and easing of interest rates.
Consumers continue to extend credit but with the holidays over, will they pull back a bit on discretionary spending as we enter 2024?
While the recent improvement in consumer sentiment is encouraging, predicting spending trends in 2024 remains complex. It remains crucial for retailers to closely monitor various economic indicators and evolving consumer behavior.