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Black Friday Sales - As Good As It Gets?

Consumers set a new record by spending USD 9.8 billion on Black Friday, as reported by Adobe Analytics. This represents a 7.5% increase compared to the previous year.

The consumer resurgence is evident! Credit card transaction data, which had shown a steady decline since September, suggests that consumers were simply saving their funds to splurge on Black Friday deals.

While this surge in spending appears to be positive news for retailers during the Christmas shopping season, not all businesses have experienced a sales boost. According to Bloomberg’s analysis of 40 well-known brands, median sales actually decreased by 4%. While some retailers like Amazon and Nike emerged as winners, the majority witnessed a decline in sales.

This raises a question: How long can US consumers sustain this level of spending? Consumer loans are on the rise, and the recent shopping frenzy is likely to further fuel this trend. Concurrently, loan delinquencies are beginning to increase at a noticeable rate.

Is this the peak for US consumer spending?


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