• Thu. Apr 18th, 2024

Slower GDP and Retail Sales Projected for 2024, but NRF Economist Remains Optimistic on Consumer Spending”.

BySamantha Jones

Apr 4, 2024
NRF reports economy is “solid” despite slowing growth rate

The National Retail Federation’s Chief Economist, Jack Kleinhenz, has expressed confidence in the economy’s foundation despite expectations for slower growth in GDP and retail sales. He stated that consumer spending will remain a key factor in the ongoing recovery, and that the economy should continue to grow in 2024, although not at an exceptional rate.

According to the NRF’s April Monthly Economic Review, retail sales are projected to grow between 2.5% and 3.5% in 2024, which marks a slowdown from the rapid growth seen during the pandemic but aligns with the pre-pandemic 10-year average of 3.6%. Overall economic growth is expected to be modest, but consumer spending should remain strong, supported by slowing inflation and positive job growth.

GDP, adjusted for inflation, is forecasted to grow around 2.3% year over year in 2024. This rate is slightly slower than the previous year’s growth of 2.5%, but it is still considered robust enough to sustain job growth and consumer spending. Consumer spending is expected to increase by about 2%, a slight decrease from the previous year’s 2.3%.

The NRF noted that inflation has decreased significantly due to various factors including moderating wage growth, supply chain improvements and higher interest rates. Despite a slight uptick in prices at the beginning of 2024, Kleinhenz anticipates inflation easing down to 2.2% year over year by the end of the year. As a result of this decrease in inflation, interest rates are expected to decrease as well with Kleinhenz predicting rate cuts by the Federal Reserve in June, September and December of this year.

In summary, while there may be concerns about slower economic growth and retail sales expectations for GDP adjustment for inflation forecasted at around $2

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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