Retail sales increased by 0.2% from Q4 '23 to Q1 '24 and surged 0.7% in March, surpassing expectations. Despite high interest rates and persistent inflation, consumer spending remains robust due to strong income growth relative to debt and new job opportunities. While sentiment is up 20% compared to the end of 2023, recent downward trends suggest concerns about the Fed’s ability to control inflation. With CPI up 0.9% compared to the previous quarter, the Fed may delay rate reductions. E-commerce and general retailer sectors continue to thrive, both up over 1.5% as consumers prioritize essential, while spending on Personal Health and Home & Garden have both declined by more than 2.5%.

Consumer spending remains robust

Consumer sentiment rises

Strong income growth relative to debt

On a monthly basis, AlixPartners charts sales, sentiment and supply chains in consumer-facing businesses. Learn more about the Consumer Products Corner newsletter and read previous articles, here.