With a late Thanksgiving this year cutting the shopping period short by five days compared to last year, many consumers got a head start on their holiday purchases. The NRF maintains its holiday season growth forecast with retail sales expected to increase by 2.5 to 3.5 per cent over 2023.
"Shoppers have already been busy since the start of November, setting the stage for a successful holiday retail period," Kleinhenz stated, highlighting that nearly 200 million people participated in shopping events from Thanksgiving through Cyber Monday.
US economic indicators remain strong, with third-quarter GDP growth at 2.8 per cent and personal consumption rising by 3.5 per cent year-over-year. Despite a slight lag in gross domestic income growth at 2.2 per cent, neither metric suggests a halt in economic growth, with a projected fourth-quarter GDP increase of 2 per cent, the NRF said in a press release.
Employment figures in October were modest due to impacts from hurricanes and labour strikes, yet unemployment stayed stable at 4.1 per cent, and consumer spending continues to be resilient. Increases in disposable income and employee compensation further support sustained consumer spending, which climbed by 5.4 per cent in October. Additionally, inflation is nearing the Federal Reserve's target, providing further optimism for the retail sector during the holiday season.
ALCHEMPro News Desk (KD)
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