Sluggish spending

Real spending in the United States had been climbing since the early days of the COVID-19 pandemic. But then inflation rose, too, causing consumers to think twice before pulling out their credit cards this holiday season. Now, say senior partner Becca Coggins and coauthors, pessimistic consumer sentiment is among the factors leading to overall growth that is lower than during the prepandemic period.

Real spending in the United States has risen since early 2020, but price increases have hampered overall spending growth.

To read the article, see “Hitting the mark: Why markdowns matter more than ever,” December 2, 2022.