‘Big Disconnect’ Between Consumer Confidence, Spending: NRF Economist
U.S. shoppers are continuing to spend, despite waning consumer confidence amid surging COVID-19 infections from the delta variant, said National Retail Federation Chief Economist Jack Kleinhenz. With consumer spending generating roughly two-thirds of U.S. GDP, “all eyes are closely watching…
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shoppers’ ability to drive the economy,” said Kleinhenz Friday. August retail sales jumped 12% despite the delta variant, he said. That brought January-August sales up 15% year over year, and on track to meet NRF’s forecast of between 10.5%-13.5% growth for the full year, he said: “That strong momentum shows there’s a big disconnect between consumer confidence and consumer spending at the moment and that the downdraft in confidence may well be a false scent.” Kleinhenz advises to “watch what consumers do, not what they say.” September consumer confidence declined for the third straight month and was down nearly 20 points from its recent peak in June, reported the Conference Board Tuesday (see 2109280020).