I expect consumer spending to remain strong for most of 2023 with savings not running out until near the end of the year says Ivan Brian, Chief Equity Analyst at FXStreet
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Last week we got back to Yohay Elam's commentary covering various assets and market events. Today, we publish Ivan Cummins' opinion on this year's black friday which turned out to be suprisingly good.
According to Adobe, Black Friday sales soared $9.12bn despite headwinds like high inflation, rising interest rates, recession fears and uncertain geopolitical outlook - what made consumers buy goods so willingly?
Ivan Brian (FXStreet):
Consumer spending is high while sentiment is low. Savings levels are high and credit card debt was also low. Credit card debt is now rising but from low levels. I expect consumer spending to remain strong for most of 2023 with savings not running out until near the end of the year, this will then likely be replaced by more credit card debt to maintain spending during the holiday season. Overall the US consumer is to remain strong. But making 2024 likely a worse scenario for consumption. Consumers spent because they have access to cash and or credit, it has yet to bite.
