Inflation dampens holiday spending, with Storch predicting weak sales growth

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Brace for a grim holiday shopping season. On October 17, 2024, Gerald Storch, CEO of Storch Advisors, painted a troubling picture of consumer sentiment during his interview with FOX Business. As inflation eats away at purchasing power, many consumers are feeling the squeeze, forced to stretch thinning wallets.

Despite spending continuing, it’s falling short of inflation’s relentless pace. Storch explained this as a sign that real purchasing power is fading, even as prices rise. The cost of living is outpacing income growth, making it harder for consumers to keep up.

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Political uncertainty looms large over this bleak forecast. Storch highlighted the upcoming 2024 election as another source of anxiety for consumers. Worries about economic stability are dampening consumer confidence further.

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Holiday sales aren’t expected to offer relief either. Storch predicts only modest growth, with holiday sales likely to hover around a sluggish 2.5% increase. The excitement of previous shopping seasons may be gone, as consumers buckle down in a challenging economy.

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