How Inflation, Slower Income Growth Is Becoming a Hurdle in Holiday Festivities

How Inflation, Slower Income Growth Is Becoming a Hurdle in Holiday Festivities | Firstpost Tech & Trade

As the holiday season kicks off in the US and other parts of the world, analysts and market research firms say consumers are expected to spend cautiously amid rising prices and economic uncertainty. Despite heavy discounts offered during Black Friday sales in the US, the National Retail Federation says 2024 holiday sales growth is expected to be the slowest in the last six years. Reports say Americans are prioritising value over big purchases as lower-income families struggle, while middle and higher-income families drive the spending. Meanwhile, last month, we also saw China celebrate Singles Day, where growth in holiday spending is projected to be slower than in previous years and far below the pre-pandemic boom. Economic headwinds, combined with lagging consumer demand, are being blamed for this slowdown. A holiday spending slump is also being observed in India, where they just celebrated Diwali and other religious festivals. However, weakened urban income growth and changing consumer habits have led to slow consumption.