{"id":2088035,"date":"2023-11-02T13:39:02","date_gmt":"2023-11-02T17:39:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/holiday-spending-expected-to-hit-record-highs-despite-inflation-and-high-interest-rates\/"},"modified":"2023-11-02T13:42:08","modified_gmt":"2023-11-02T17:42:08","slug":"holiday-spending-expected-to-hit-record-highs-despite-inflation-and-high-interest-rates","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/holiday-spending-expected-to-hit-record-highs-despite-inflation-and-high-interest-rates\/","title":{"rendered":"Despite inflation and high interest rates, holiday spending is projected to reach record levels."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fholiday-spending-expected-to-hit-record-highs-despite-inflation-and-high-interest-rates%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2088035&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Holiday \u200dSpending Expected \u200dto Reach Record Levels Despite Challenges<\/h2>\n<p>Get ready for a\u200c holiday shopping season like no\u2064 other. \u2064According to a new \u2063forecast by\u2064 the National Retail Federation,\u200c holiday spending is \u200cprojected \u200dto break records once again\u200c this year, despite the challenges of inflation and higher interest\u2063 rates.<\/p>\n<p>The NRF&#8217;s 2023 holiday shopping projections reveal \u200dthat consumers are expected\u200d to increase their spending by 3% \u2063to 4% compared to \u200blast year. In\u2063 total, shoppers are anticipated to spend\u2063 a\u200c staggering $966.6 billion in November\u200b and December.<\/p>\n<h3>Returning to Pre-Pandemic Levels<\/h3>\n<p>NRF President and CEO Matthew Shay expressed his lack \u2063of surprise at the expected\u2063 growth, stating, &#8220;It is \u200cnot surprising to see holiday sales growth returning to pre-pandemic levels.&#8221; He further explained\u200b that overall <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-says-us-is-in-new-phase-of-recovery-after-report-shows-decline-in-gdp\/\" title=\"Yellen Says US Is In \u2018New Phase\u2019 Of Recovery After Report Shows Decline In GDP\">household finances remain strong<\/a>, which\u2062 will continue to support consumers&#8217;\u2063 ability to spend.<\/p>\n<p>Researchers note that the projected growth aligns \u200cwith pre-pandemic trends, as annual holiday spending saw an average increase of 3.6% from 2010 to 2019.<\/p>\n<h3>A\u2064 Slowdown from\u2064 Previous Years<\/h3>\n<p>While this year&#8217;s\u200d shopping season \u200cis expected \u2063to be robust, it is likely to be a slowdown\u200d compared to the impressive growth of 2022, which \u2064reached 5.4%. Additionally, it\u2063 falls short of the extraordinary rebound\u2064 years during\u2062 the pandemic, with holiday sales surging by over 9% in 2020 \u200dand a staggering 13.5% in 2021.<\/p>\n<p>However, Shay \u200bremains\u200c optimistic, highlighting historically low unemployment rates, robust wage growth, and a strong labor\u200b market as \u200bfactors\u2063 that will support consumer spending during the holiday season.<\/p>\n<h3>Continued Growth and \u2062Outperformance<\/h3>\n<p>Shay emphasized \u2064that\u2063 retail sales have experienced year-over-year growth for an \u2064impressive 41 consecutive\u200d months, starting from\u200c May 2020. This growth \u200bdefied expectations, as many economists\u2064 had predicted a\u200b recession during last year&#8217;s holiday shopping season.<\/p>\n<p>The economy \u200chas \u200dalso outperformed historical norms, with the gross\u2063 domestic product (GDP)\u2063 accelerating to a 4.9% seasonally adjusted annual rate in the third quarter \u200cof this year. \u2063This exceeded economists&#8217; expectations of a 4.2% increase.<\/p>\n<p>Furthermore, job \u200dgrowth has remained steady, with the unemployment\u200d rate at just 3.8% last month. Surprisingly, the \u2063number \u200dof job openings also rose to 9.55 \u200bmillion in September, defying expectations.<\/p>\n<h3>Challenges of Inflation and Higher\u200c Interest Rates<\/h3>\n<p>Despite\u2062 the \u2064positive\u200b economic indicators, \u2062consumers are still grappling with the effects of inflation. In \u2062September, inflation rose\u200c to 3.7%, nearly\u2063 double \u200bthe Federal Reserve&#8217;s \u2063healthy threshold, according \u200dto the consumer price\u200b index.<\/p>\n<p>In response, the Federal \u2063Reserve has raised its interest rate target, resulting in higher mortgage rates and increased costs\u200c for credit card\u2064 debt. However, NRF \u200cchief economist\u2062 Jack Kleinhenz remains\u2063 optimistic, stating that consumers\u200d are resilient and will \u2063continue\u200d to spend,\u2064 albeit at a \u2064slower \u200dpace. He expects solid job and wage \u2062growth to \u200ccontribute to this holiday season&#8217;s\u2062 spending, with consumers seeking deals and discounts to stretch their budgets.<\/p>\n<h3>Early Start to the\u2063 Shopping Season<\/h3>\n<p>Consumers have\u200d been starting their holiday shopping earlier each year. This trend was evident\u2063 during Prime Big Deal Days,\u2064 an online event held \u200bin October that\u200d marked the \u200bearly start of the shopping season. Amazon reported that Prime users \u2064saved over \u200c$1 \u200cbillion on millions of deals during the 48-hour \u2063event. On the first day alone, \u206225 million items were purchased with same-day or \u200bnext-day delivery.<\/p>\n<p>Ted Rossman,\u200b senior industry analyst at Bankrate, noted \u200cthat companies have been offering discounts well in advance\u200b of the holiday \u200dshopping season, with &#8220;Black Friday sort \u200cof \u200bcomes in October now.&#8221;<\/p>\n<p>Get ready \u200dfor\u200b an exciting and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/holiday-spending-expected-to-hit-record-highs-despite-inflation-and-high-interest-rates\/\" title=\"Despite inflation and high interest rates, holiday spending is projected to reach record levels.\">record-breaking \u2062holiday shopping \u2064season ahead<\/a>!<\/p>\n<p> <\/p>\n<h2> How has the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/vandals-hit-san-fran-wine-shop-owned-by-gavin-newsom-for-the-4th-time-in-2021\/\" title=\"Vandals Hit San Fran Wine Shop Owned By Gavin Newsom For The 4th Time In 2021\">pandemic-induced recession<\/a> impacted GDP growth and \u2064what does that mean for the retail sector?<\/h2>\n<p><span>  \u200dRebounded from\u200d the pandemic-induced recession, \u2062with GDP growth exceeding expectations. This indicates\u2062 a strong foundation \u2064for continued\u2062 growth in the retail \u2063sector.<\/p>\n<p>Furthermore, consumer confidence remains high, with individuals feeling more optimistic about \u2063their\u200c financial situations and future prospects.\u200d This positive sentiment is \u2063expected \u200bto \u2064translate into increased holiday spending.<\/p>\n<p>However, it&#8217;s\u2063 important to note that challenges still exist. Inflation has been a \u200cmajor concern, \u200bwith rising prices of goods \u2062and services impacting consumers&#8217; purchasing\u200d power. Additionally, higher interest rates may\u2062 make borrowing more\u2063 expensive and potentially deter some consumers from making big-ticket\u2062 purchases.<\/p>\n<p>Retailers are\u2063 also <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-cop-under-investigation-over-support-for-anti-vaccine-mandate-trucker-convoy\/\" title=\"Canadian Cop Under Investigation Over Support For Anti-Vaccine Mandate Trucker Convoy\">facing supply chain disruptions<\/a> and shortages of key products, which may affect the\u2062 availability of certain items during\u200b the holiday season. \u200dThese challenges, combined with increased online shopping, may lead to longer delivery times and potential disappointment for\u2063 some shoppers.<\/p>\n<p>Despite these obstacles, retailers \u200dare\u200b preparing \u200bfor\u2063 a \u2064busy holiday season. They\u200b are implementing strategies to mitigate supply\u2062 chain disruptions, \u200bsuch as\u2063 diversifying sourcing and increasing \u2064inventory \u2062levels. E-commerce platforms are investing in \u200ctechnology \u200dto\u2064 improve delivery logistics and enhance the online\u2064 shopping experience.<\/p>\n<p>The\u200d NRF&#8217;s\u2062 forecast\u2063 indicates that consumers are\u2063 ready \u2062to embrace\u2064 the holiday spirit and \u2064make the most\u200b of the \u200cseason. They\u200d are looking forward \u2062to reconnecting with loved ones and treating \u2064themselves\u2062 and others with gifts and \u2064experiences. This mindset, \u200dalong with the overall favorable economic conditions, is expected to drive holiday spending to new heights.<\/p>\n<p>In conclusion,\u200b the holiday shopping season is expected to \u2062reach record levels this year, despite\u200b the\u2063 challenges posed by inflation\u2063 and higher interest rates. Consumers \u200care \u200cprojected to \u2064increase their spending, returning it to pre-pandemic levels. While the growth\u200b rate may be slower \u2062compared to previous\u2063 years, the overall trend remains positive. Retailers \u200bare adapting to supply\u2063 chain disruptions and investing in technology to \u2064meet \u200cconsumer\u2064 demands. With a strong economy and high consumer \u200dconfidence, the stage is set for a joyous and\u200b prosperous holiday \u2063season.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>to spend an all-time high despite inflation and higher interest rates. The National Retail Federation&#8217;s 2023 holiday shopping projections reveal a 3-4% surge in spending compared to last year.<\/p>\n","protected":false},"author":1,"featured_media":2088036,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2088035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2088035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2088035"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2088035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2088036"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2088035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2088035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2088035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}