Consumer Behavior

NRF: Retail 2024 ended on high note, growth ahead

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January 13, 2025

The year 2024 ended on a high note and the retail segment should continue to show strength in 2025, according to the National Retail Federation.

"The U.S. economy ended 2024 on a high note and the outlook looks promising for 2025," NRF Economist Jack Kleinhenz said in a press release. "Recent performance shows the economy is on solid footing and has been growing at a steady pace and above its historical average. The labor market is healthy, unemployment is low, inflation has fallen almost to the Federal Reserve's target even though it remains somewhat sticky, and the direction of interest rates remains lower."

The economist said there is good reason to expect healthy economic growth though there are a lot of "moving parts." Key factors could include changes to trade, immigration, regulation, tax and spending policies and their impact on economic activity, according to the release.

Kleinhenz's comments came in the January edition of NRF's Monthly Economic Review.

Consumer spending on both goods and services grew 5.5% year over year unadjusted for inflation in November and December combined while disposable personal income was up 5.2%, year over year, helping boost consumer purchases, according to the release.