The Backroom: Observations on Consumer Performance Year-to-Date
As retailers release their first-quarter earnings, many companies are preparing for a year full of economic uncertainty. Inflation is easing, and consumer spending continues, but priorities have shifted toward experiences such as dining out and entertainment. Non-essential goods have clearly taken a backseat.
As retailers release their first-quarter earnings reports, many companies are preparing for a year full of economic uncertainty. Inflation is easing, and consumer spending continues, but priorities are shifting toward experiences such as dining out and entertainment. Non-essential goods are clearly taking a back seat.
Despite this, retail sales in the first few months of the year have remained fairly robust. As the team recorded this podcast episode—and as of press time—the White House and Republican leaders in Congress had not yet reached an agreement on the debt ceiling. Several economists have warned that failure to reach a deal soon could lead to a U.S. debt default, potentially pushing the economy into a more gloomy period.
In this episode of The Backroom, reporter Daphne Howland and Dani James discuss how various sectors performed in the first quarter and what that means for the rest of 2023.
Resource Links
- April retail sales rise 2.6% amid stable job market and income growth
- Adobe: Online prices continue to fall
- Q1 performance review of DTC brands
- McKinsey: Consumers are both trading down and splurging
Editor's note: This episode was produced and edited by Caroline Jansen.