The signals: Several indicators suggest that consumer spending is picking up after a sluggish end to 2022.
A deeper look: Strong jobs numbers and lower inflation helped US consumer sentiment reach a 13-month high this month, per data from the University of Michigan.
Reasons for pessimism: Although many signs are pointing in the right direction, we’re not out of the woods yet.
The big takeaway: Retailers have experienced whiplash over the last few years as they went from enduring supply chain bottlenecks to too much inventory to a sudden slowdown in retail sales. If anything, they’ve learned to expect the unexpected and to build contingency plans. That type of exercise is always important, but it is all the more critical as we shift into a period of slower retail growth.
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.