The latest data suggests that US consumers are continuing to spend during the holiday season, but with a more cautious approach. Retail sales rose 0.7% in November, driven mainly by increased spending on cars. However, many other categories saw declines, including grocery stores, department stores, and restaurants.
Online shopping was a bright spot, with sales growing almost 2%. Consumer spending has strengthened over the past year, with retail sales increasing by nearly 4% compared to the same period last year.
While the data suggests that the economy is still strong, some analysts are interpreting it as evidence of moderate softening. However, others believe that this slowdown may be a sign of a rate cut from the Federal Reserve rather than a major downturn.
The American consumer remains a key driver of economic growth, with no indication that this trend will change soon. As one retailer noted, the good times will likely continue into the holiday season. The data is reassuring for those looking to invest or make purchasing decisions during this period.
Source: https://www.axios.com/2024/12/17/holiday-shopping-consumers-cars