Increased Shopper Optimism Imminent, But Not All Elements Aligned: Since Q2, portions of shopper confidence have been building, with economic and personal finance expectations on the rise.
Additionally, among job seekers, optimism is growing, moving in concert with favorable employment reports. Back-To-School shopping was a bright spot, with consumers bucking recent years’ trends and spending more this year. Despite this, the economy remains the key concern. Gas prices came down but were still higher than what consumers expected; they are reluctant to trust that sustained lower prices are forthcoming. Although we haven’t seen pricing effect from the Midwestern drought as of yet, media attention caused increased apprehension about food prices among shoppers.
Sluggishness in disposable income remains a key barrier to confidence growth, and there are indications that some consumers are patching income gaps with credit card purchases. Because of this, consumers’ mindset for Holiday spending is both hopeful and guarded.
Additionally, among job seekers, optimism is growing, moving in concert with favorable employment reports. Back-To-School shopping was a bright spot, with consumers bucking recent years’ trends and spending more this year. Despite this, the economy remains the key concern. Gas prices came down but were still higher than what consumers expected; they are reluctant to trust that sustained lower prices are forthcoming. Although we haven’t seen pricing effect from the Midwestern drought as of yet, media attention caused increased apprehension about food prices among shoppers.
Sluggishness in disposable income remains a key barrier to confidence growth, and there are indications that some consumers are patching income gaps with credit card purchases. Because of this, consumers’ mindset for Holiday spending is both hopeful and guarded.
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