US holiday sales will grow at a slower pace this year amid economic headwinds such as higher interest rates, the National Retail Federation (NRF) said.
According to a report released on Thursday by the retail industry organisation, the industry’s sales in November and December of last year are predicted to increase by 3 per cent to 4 per cent. Holiday sales increased by more than 5 per cent in 2022, although they fell short of the first estimate of 6 per cent to 8 per cent growth. The NRF’s estimates are not adjusted for inflation; they indicate that Christmas growth will recover to levels comparable to the average in the ten years before to the pandemic.
American consumers are dealing with an economy that is expanding quickly in spite of worries about a recession. However, consumer confidence, which gauges spending intentions and economic expectations, dropped to a five-month low in October due to inflation, rising rates, and the recent resumption of student loan payments. These factors are putting financial burden on consumers.
“Our sense is that the cumulative effect of all of these things is going to show some moderation in consumer behavior relative to the last few years of holiday spending,” Matt Shay, the NRF’s president and chief executive officer, said on a call with reporters.
Despite indications of stress, the unemployment rate is still historically low, and the cost of several goods, including as clothing, has decreased from its peak during the pandemic. This has contributed to the ongoing US buying frenzy. Spending on athletic goods, travel, apparel, furnishings, and restaurant meals increased by more than 5 per cent from July to September compared to the previous quarter.
Bharat Tex Special Report 2026 
