We still expect retail sales to increase about 3% this year, despite recent evidence of consumer fatigue -- in June’s dreary retail sales numbers from the Census Bureau and scant hopes for a big rebound in July.
Stronger job growth along with lower gasoline prices will drive up consumer spending in coming months, though the 3% gain will be short of retail sales growth in 2010.
But retailers will have to work hard to get shoppers to spend more. Cost-conscious consumers will continue to keep their eyes peeled for discounts. Hefty price markdowns and free shipping for online orders will become commonplace.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This year’s back-to-school sales may not be much to write home about: The average American family probably won’t spend more than the $600 it spent on school needs a year ago. And once again, most parents will wait until school starts to buy school supplies.
One bright spot in June’s retail sales report: Auto sales and parts forged a comeback. They rose 0.8% after struggling from March through May in the face of supply disruptions following the March earthquake in Japan. Auto dealers posted their first gain since February.
However, excluding sales of cars, gasoline and building materials, consumer purchases, including furniture, electronics, personal care and sporting goods, declined broadly.
Consumers also cut back on dining out in June -- a sure sign of stress. Consumer spending for the second quarter overall was close to zero, a big contrast to the 4% increase in the fourth quarter last year.
-
6 Stunning Waterfront Homes for Sale Around the USFrom private peninsulas to lakes, bayous and beyond, Kiplinger's "Listed" series brings you another selection of dream homes for sale on the waterfront.
-
Six Reasons to Disinherit Someone and How to Do ItWhether you're navigating a second marriage, dealing with an estranged relative or leaving your assets to charity, there are reasons to disinherit someone. Here's how.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
A Move Away From Free TradeThe Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
-
The Explosion of New AI ToolsThe Kiplinger Letter Workers and consumers soon won’t be able to escape generative AI. Does that mean societal disruption and productivity gains are right around the corner?
-
Trump’s Whirlwind Month of Crypto MovesThe Kiplinger Letter The Trump administration wants to strengthen U.S. leadership in the cryptocurrency industry by providing regulatory clarity.
-
Excitement Over AI Propels IT SpendingThe Kiplinger Letter IT sales set to surge in 2025 as businesses rush to adopt generative AI.
-
Donald Trump Tests His LimitsThe Kiplinger Letter President Encounters Legal Obstacles in Pursuit of Ambitious Agenda.
