Retailers are predicting slower growth this holiday shopping season due to inflation, higher borrowing costs, and the resumption of student loan repayments, causing consumers to be more cautious.
The National Retail Federation's annual projection estimates that holiday sales will increase by up to 4%, down from 5.4% last year. After strong consumer spending drove the economy to a 4.9% annual growth rate in the July-September quarter, the anticipation is that the resilience of consumer spending will buckle during the critical holiday season due to a decline in consumer confidence and other pressures.
Retailers are expected to drop discounts to draw consumers and expect to hire between 345,000 and 450,000 seasonal workers.
How much will you be spending this holiday season?