It seems like money is burning through American pockets, despite concerns over inflation and a possible recession. Consumer spending remains high in 9 of 13 retail categories, likely due to falling gas prices as well as inflationary rises in day-to-day necessities such as food and household goods.
American spending habits, however, are directly at odds with the US Federal Reserve’s attempts at eliminating inflation altogether. The Fed is spiking interest rates in an effort to cool down the economy, but not so much as to cause an outright recession.
American spending is trending back to pre-pandemic patterns, focusing more on experiential rather than material, much to the chagrin of retailers desperately trying to right inventory levels, which were beefed up to offset supply chain congestion and delays.
Learn more about the current state of American spending habits here