Consumers Enter Holiday Homestretch

Summary

• Consumer Sentiment fell 16.3% YOY in December, with all components of the index down YOY; MTM the index rose slightly, a positive shift for retailers looking to drive December sales
• Consumers have less spending power and are dipping into savings / extending credit to cover the gap; personal savings was down 2.3% in October, and revolving credit debt continues to climb, increasing 15.2% in October
• Retail sales (excl. autos/parts/gas stations) increased 6.7%% in November, slightly exceeding the Core Inflation rate of 6%; sales were down .2% over previous month totals
• Sales growth is still not keeping up with Inflation, which is driving increased inventory levels
• Despite this consumers have returned to dinning out, while they continue to buy online at the same rate.