Is Consumer Spending Slowing Down?
Audio version available here:
Length: approx. 1 min. 10 sec.
As the holiday shopping season kicked off with Black Friday last week, business owners may notice a lower than expected revenue stream. As we previously reported, despite record spending, consumer confidence has been on a decline. This could spiral into consumers taking a more frugal approach in their holiday shopping for 2023.
There are several factors that can cause this shift in the economy. From housing costs being at their “highest in 40 years”, cars becoming increasingly more difficult to afford, and the ever-mounting credit card balance problem, the odds keep piling against average Americans. Of course, some figures for these factors are not adjusted for inflation, and most working Americans have actually seen an increase to their yearly wage when compared to 2020. However, the current spending craze has more than likely been fueled by pandemic-era savings, of which consumers have spent nearly $1.9 trillion. This is dangerously close to the projected $2.1 trillion of built-up savings.
With all this in mind, business owners may want to brace for a slower than average holiday season. The best preparation is to know your numbers. The way to do this is with a reliable bookkeeper and financial advisor. Don’t have one? Reach out to our experienced professionals at XQ CPA! Click or call to schedule a consultation today.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
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