NRF reports economy is “solid” despite slowing growth rate

Despite expectations for slower growth in GDP and retail sales, the economy is expected to continue performing well for the remainder of the year, according to Jack Kleinhenz, the National Retail Federation’s Chief Economist. Kleinhenz expressed confidence in the economy’s foundation, mentioning that consumer spending is a key factor in the ongoing recovery.

The NRF’s April Monthly Economic Review forecasts that retail sales will grow between 2.5% and 3.5% in 2024. While this marks a slowdown from the rapid growth seen during the pandemic, it aligns with the pre-pandemic 10-year average of 3.6%. The report also predicts that GDP, adjusted for inflation, will grow around 2.3% year over year in 2024, slightly slower than the previous year’s growth of 2.5%, but 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%. However, despite a slight uptick in prices at the beginning of 2024 due to supply chain disruptions and higher labor costs, Kleinhenz anticipates inflation easing down to 2.2% year over year by the end of the year due to various factors such as moderating wage growth and supply chain improvements. As a result, interest rates are expected to decrease further with rate cuts by the Federal Reserve in June, September, and December of this year.

In summary, while there may be some slowdown in GDP and retail sales growth compared to pre-pandemic levels, overall economic growth is expected to remain modest but strong supported by consumer spending and positive job growth. With inflation decreasing significantly due to various factors such as moderating wage growth and supply chain improvements

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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