Lead US economist at Oxford Economics Michael Pearce stated in a research note on Tuesday, “The risks that spending contracts outright are fading, even though mounting headwinds to consumer incomes mean we expect spending growth to slow in the months ahead.”
Sports goods was the only category that remained the same from August to September, out of the 13 categories that were covered in the publication. With a 3% increase over August, sales at sellers of various stores topped all other categories. Sales at non-store merchants increased by 1.1%, while sales at auto and parts dealers saw a 1% increase from September to September.
The largest laggards were clothes sales, which fell 0.8% from the previous month, and electronics and appliance businesses.
Although strong consumer spending has been credited with preventing a US recession in 2023, several institutions have lately signalled that a slump is still likely to occur.
Although companies and consumers “generally remain healthy,” JPMorgan CEO Jamie Dimon observed on Friday that their financial buffers are being depleted. In his assessment of the US economy, Bank of America CEO Brian Moynihan said that while consumer spending is up over the previous year, it is “continuing to slow.”