The upcoming shopping season is expected to be slower this year than previous seasons as persistent inflation hits shopper budgets.
Consumers in the U.S. are up against inflation levels not seen in decades which has caused a slowing of discretionary spending on non-essentials.
According to a report from Mastercard's Spending Pulse, this holiday season could see fewer long lines and empty shelves as shoppers continue to be wary of the economy and focus on saving.
In the Monday report, Mastercard says, "As inflation impacts consumer wallets, bargain hunting is expected to be in full force this holiday season."
Michelle Meyer, U.S. Chief Economist, Mastercard Economics Institute, said, “This holiday season, consumers may find themselves looking for ways to navigate the inflationary environment – from searching for deals to making trade-offs that allow for extra room in their gift-giving budgets.”
But there could be good news ahead as well.
Meyer said, “New job creation, rising wages, and lingering savings should have many consumers ready and able to spend.”
Experts say this holiday season, shoppers might see far more promotions than in previous years to entice customers even more than before.