Sentiment continues to climb compared to this time last year, buoyed by slowing inflation and a strong jobs market. The latter are fueling income’s outpacing of debt, which is, in turn, driving increased spending on personal health and wellness and e-commerce. As expectations rise that interest rate hikes may soon be ending, economists are beginning to question previous predictions of a recession. The second half of 2023 is still filled with numerous unknowns: Will consumers continue to push a strong economy? Will COVID-era savings eventually dwindle and push debt higher? Whether retail spending continues to climb or consumers are forced to tighten their budgets, what is clear is that Consumer Products companies will need to stay agile, continuing to differentiate themselves to win customers.
Retail trade growth falls to 4% YOY
Consumer sentiment continues to climb
Increase in debt outpaces income growth
On a monthly basis, AlixPartners charts sales, sentiment and supply chains in consumer-facing businesses. Learn more about the Consumer Products Corner newsletter and read previous articles, here.