The trend lines: While the European economy appears headed toward a recession, the US economy may manage to achieve a so-called soft landing in which growth is moderate but positive, and unemployment rises modestly.
Europe’s unique challenges: The war in Ukraine, and Russia’s attempt to weaponize energy by shutting off the flow of gas through a key pipeline to Europe, sent energy costs soaring 41.5% YoY in October and 34.9% YoY in November.
The US retail landscape: It’s a different story in the US, where several economic indicators suggest households headed into the holiday season in a good position to spend despite high inflation.
The big takeaway: The European economy is expected to contract this quarter and the first quarter of next year, per a European Commission forecast released last month.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.