US spending spree looms

Confidence low amid concern over inflation, tariffs.

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Americans are expected to spend a record amount over the holiday season, despite lingering worries in the world's biggest economy about stubborn inflation, tariffs and the knock-on effects of the government shutdown.

"Consumers remain pretty concerned about inflation and there's no doubt about where prices are going," Mark Mathews, chief economist at the National Retail Federation (NRF), said.

For Mathews, the last time consumer confidence was so low - apart from the aftermath of the coronavirus pandemic - dates back to the early '80s.

But, he added: "Over the past few years, we've seen consumers spend irrespective of how they're feeling about things."

The National Retail Federation expects holiday sales - from 1 November to 31 December - to top $1 trillion (about R17 trillion) for the first time, with growth of 3.7-4.2% as compared with last year.