According to a report released by CNBC/National Retail Foundation (NRF), consumers are continuing to spend into 2024, with core retail sales up by 3.2% from the previous year in January and retail sales up in six out of nine categories. This indicates that consumer spending is on the rise, despite concerns about inflation and economic uncertainty.
The report was released ahead of Thursday’s U.S. retail sales data from the Census Bureau, which will provide more insight on consumer spending. Household views on personal finances and the economy are also looking brighter as high inflation continues to fade, with most people stating that their finances were better off than a year ago. This suggests that consumers are feeling more confident about their financial situation and may be more likely to make purchases in the near future.
However, despite this generally positive sentiment, views on the labor market were less upbeat. People expressed lower confidence in finding another job within the next three months, indicating that there may be some concern about job security and unemployment rates. Overall, while consumer spending is on the rise, it is important for businesses to keep an eye on labor market trends and ensure that they are offering competitive compensation packages and benefits to attract and retain top talent.