Morning Wire Black Friday Spending: What’s Behind America's Record-Breaking Buying? | 11.24.23
Nov 24, 2023
Discover why consumers are still splurging despite inflation fears and financial instability. Gen Z's carefree spending habits raise eyebrows as they face an uncertain future. Black Friday trends hint at modest growth, influenced by a surge in online shopping. Meanwhile, political rhetoric on inflation contrasts sharply with everyday financial struggles. As debt rises and recession looms, experts warn about the long-term consequences of these economic trends for American households.
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Consumer Spending & Debt
- Consumers, representing 70% of GDP, drive the economy.
- Despite inflation, confident consumers are spending, depleting savings and increasing debt.
Retail Sales & Gen Z Savings
- Retail sales figures, not inflation-adjusted, overstate actual spending volume increases.
- "Soft savings" by Gen Z reflects a concerning trend of prioritizing short-term enjoyment over long-term financial security.
Black Friday Projections
- Black Friday spending is projected to grow 3-4%, driven by early deals and online shopping.
- This growth, however, doesn't fully account for inflation's impact on real spending power.