This fall is another wild-card situation at retail.
According to the latest update from the National Retail Federation (NRF), consumer confidence continues to decline amid inflationary concerns, but the looming cloud of uncertainty hasn’t necessarily stifled spending.
“The economic situation in the United States is unsettling,” says NRF Chief Economist Jack Kleinhenz. “Consumer confidence is down, consumer spending’s rate of growth has slowed, and economists and consumers alike are worried about the possibility of a recession, all reflecting persistently high inflation and rising interest rates. Nonetheless, spending continues to grow, and many economists say a recession — if there is one — will likely be mild.”
In the October issue of NRF’s Monthly Economic Review, the organization noted that consumer spending has remained solid with better-than-expected results in August, While September numbers won’t be revealed until later this month, the U.S. Census Bureau and the NRF — which use different methods of calculation — reported August year-over-year retail sales growth of 9.1% and 8% respectively.
With inflation hitting an average of 10-15% in the toy department, it remains to be seen whether or not true growth will occur for the U.S. toy industry during the holiday season or if higher costs will continue to level out a loss in unit sales.
