Spending Growth during Recession?

A most unusual recession, at a global scale

US Consumers are spending 4% more in Clothing during 2021–22 Recession. Typically, spending goes down during recession but this has been most atypical.

One plausible explanation is Volumes. Number of units purchased has gone down as Prices have shot up, due to significant increase in Inflation. So, in fact, consumers are spending less, paying more, and in total spending more….despite a huge uptick in Inflation.

What does this mean to Brands & Retailers? Your customer is much more sensitive to higher priced items and need to understand value before buying.

Photo by Ian Taylor on Unsplash