Consumer Confidence Finally Matches Economic Growth

Retail Sales Beat Expectations in January, Consumer Confidence Soars Despite Mixed Labor Market Outlook

According to a report released by the CNBC/National Retail Foundation (NRF) on Monday, core retail sales in January were 3.2% higher than the same month last year. This suggests that consumers continued their spending habits into 2024, driving sales higher yet again in January. The NRF also reported that December’s sales growth was better than expected at 2.4%. In six of the nine categories tracked by the NRF, including health, clothing, and groceries, sales increased.

The positive trend in retail sales was highlighted by NRF President and CEO Matthew Shay as “impressive coming off a record holiday season.” The report comes ahead of Thursday’s U.S. retail sales data from the Census Bureau, which economists will closely monitor to see if consumers continue to beat spending expectations.

In addition to the positive news for retail sales, a monthly survey of 1,300 households conducted by the Federal Reserve Bank of New York revealed that household views on personal finances and the economy are looking brighter as high inflation continues to fade. In January, many people said their finances were better off than a year ago and the median expectation for inflation in three years fell to 3.03%, its lowest since March 2020. Despite this more positive outlook, people took a dimmer view of some aspects of the labor market. On average, they said they had a 54.2% chance of finding another job in the next three months if they lost their current position, which is the lowest since September 2021. Recent government data on the labor market has been mixed with companies still hiring at a brisk pace but many have pulled back on job openings in recent months.

Leave a Reply

Byrna Technologies is growing their manufacturing presence in Fort Wayne – Inside INdiana Business Previous post Byrna Technologies Expanding Manufacturing Operations in Fort Wayne to Meet Unprecedented Demand from Celebrity Influencers”.
Assure Holdings and Danam Health Announce Business Merger Next post Assure Holdings Completes Merger with Danam Health and Changes Name to Danam Health Holdings Corp.