Producer prices rose less than expected in March, but inflation is still high, especially for services. Consumers are concerned and spending less on non-essential items. Credit card delinquency rates are up, but household finances are generally strong. Retail growth is expected to slow in 2024, and some retailers are seeing a decrease in demand. Overall, although PPI growth has slowed slightly, inflation remains a major issue affecting consumer spending and the retail sector.
Despite debt worries, Americans plan to indulge in travel, dining, and entertainment in 2024. Young adults prioritize present enjoyment over future savings, influenced by the pandemic's "you only live once" mindset. This "revenge spending" or "doom spending" results in taking on more debt, with Gen Z and millennials most likely to splurge. However, experts warn that neglecting long-term financial security through saving may have future repercussions.
