Consumers power the U.S. economy, and their capacity to spend has repeatedly defied predictions.
In early 2020, after a short but severe recession caused by the pandemic, consumers splurged on big-ticket goods, from patio furniture to flat-screen TVs and home gym equipment.
Then came what economists called “revenge spending” with experiences that were off-limits during lockdowns, like traveling and going to concerts, taking precedence.
Financial reports from retailers — including Macy’s, Kohl’s, Foot Locker and Nordstrom — that landed this week suggest a shift is underway, from consumers buying with abandon to spending more on their needs.
Retail sales in July were stronger than expected, leading some economists to raise their forecasts for economic growth this quarter.
Persons:
Locker, Nordstrom, “, ”, Janine Stichter
Organizations:
”
Locations:
U.S, Kohl’s