Consumers Are Getting Squeezed As Inflation Reaches 31-Year High And Household Income Drops

Consumers Are Getting Squeezed As Inflation Reaches 31-Year High And Household Income Drops

Front view of handsome mature businessman in eye wear sitting at wooden table in kitchen, holds a ... [+] modest amount of money. Serious man sitting alone at home. Retailers are banking on a stellar holiday shopping season. "Holiday spending has the potential to shatter previous records," the National Retail Federation exclaimed, as it predicted November and December retail sales will grow between 8. 5% and 10. 5% over 2020. Sensing growing consumer momentum for a return to normal holiday celebrations, NRF President and CEO Matthew Shay said, "Consumers are in a very favorable position going into the last few months of the year as income is rising and household balance sheets have never been stronger." Trouble is he didn't get the latest memo from the Bureau of Economic Analysis which reported that personal income actually dropped by 1% in September. This followed more troubling news from the Census Bureau that American median household income declined 2. 9% in 2020, the second-highest level in the last 40 years. Note: The NRF did not respond to a request for comment. Only three times since 1980 have median household incomes dropped by so much, in 1991 when it dipped 2. 9% and