U.S. retail sales are expected to grow at a slower pace this year, the National Retail Federation (NRF) said on Wednesday, as fears of a recession and jitters in the banking sector cast a shadow over the recovery consumer spending.
The trade body said it expects retail sales to grow 4-6% to $5.13-5.23 trillion, compared to 7% growth in 2022 to reach $4.9 trillion.
Off-store and online sales, in particular, are expected to rise 10% to 12% to a range of $1.41 trillion to $1.43 trillion, the NRF added.
“Although it is still too early to know the full effects of the banking sector turmoil, consumer spending looks quite good for the first quarter of 2023,” said NRF chief economist Jack Kleinhenz, highlighting the benefits of strong labor market, wage growth and accumulated savings during the pandemic.
“We expect growth to moderate over the coming year, but growth will remain positive as retail sales stabilize at more historic levels,” said Matthew Shay, President and CEO of the NRF.
