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.
-
What to Know Before Flying With Your PetFrom documentation and TSA screening to carrier rules and airport relief areas, here’s what to know before taking your pet on a flight.
-
We Are Peter Lynch: How to Invest in What You KnowTake a look around, go to a free stock market data website, and get to work.
-
Will State Laws Hurt AI’s Future?The Kiplinger Letter Republicans in Congress are considering a moratorium on state AI laws. But it’s likely a growing patchwork of state AI regulations will be here for a while.
-
The New AI Agents Will Tackle Your To-Do ListThe Kiplinger Letter Autonomous AI agents “see” your computer screen, then complete a task, from buying a concert ticket to organizing email. This opens up a world of possibilities.
-
AI’s Medical RevolutionThe Kiplinger Letter Medicine is a field ripe for finding both exciting and practical uses for AI. The tech is already being used by doctors and researchers.
-
The Economic Impact of the US-China Trade WarThe Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
AI Heads to WashingtonThe Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
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.
