With war and inflation in the offing, fashion and the economy face a complicated future.
The official retail sales figures are not adjusted for inflation, which is at a 40-year high as the world works through pandemic-related supply chain backups and increasing tensions over the war, which is threatening Europe with a recession and has clamped down on the now heavily sanctioned Russian economy. Seasonally adjusted figures comparing March sales with February’s show that all of the economic strain is starting to impact sections of theWhile gas sales were up 8.
“While prices soared in March and eroded spending power, shoppers remained resilient and sales were healthy,” Kleinhenz said. “Consumers have the willingness to spend and their ability to do so has been supported by rapid hiring, increased wages, larger-than-usual tax refunds and the use of credit. They are largely dealing with the shock of gas prices, but will be facing higher interest rates as the Federal Reserve tightens monetary policy in the coming months.
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