When is $963 billion not enough?
Welcome to the Know the Difference Minute for Wednesday, January 18th.
The National Retail Federation reported today that 2022 Holiday Sales were up 5.3% on the heels of $963 billion in spending. The estimate was between 6 and 8%--but in the face of economic conditions, we knew it was an uphill battle. Shoppers are being pinched. High inflation is forcing changes in buying behavior—either cutting back or trading down. 
But this also might be exactly what The Fed wants to see. Higher interest rates were designed to slow down spending. The end goal is to cool the economy just enough without crashing it.
Where’s that leave retailers? Remember, 70% of GDP is consumer spending. Americans are paying more for groceries and housing, running up credit card bills, and spending down savings. That means fewer dollars for discretionary spending.  
I’m Dave Spano from Annex Wealth Management.  That is your Know the Difference Minute.