There are many factors that help retailers understand how the industry is performing and what they can expect in the near future. Perhaps two of the most important elements that merchants analyze is consumer confidence and spending, as these paint a picture of how shoppers are feeling and whether or not their optimism is translating into increased retail sales.

According to The Associated Press, consumer spending rose throughout July, as data from the U.S. Commerce Department found this figure jumped by 0.1 percent. While it's not a strong gain, it is a step in the right direction, and it follows June's spending increase of 0.6 percent. The source explained that nondurable goods, such as clothing, were the main items purchased during July, with a 0.8 percent boost.

As for consumer confidence, this took a small drop recently, as reported by Daily Finance. The Thomson Reuters/University of Michigan Consumer Confidence Index fell from 85.1 in July to 82.1 in August. Despite this decline, the news source noted that overall, consumers appear to be confident in the nation's economy as well as their own financial conditions. These factors could contribute to a successful next few months for retailers, which is welcome news as the holiday shopping season quickly approaches. 

This entry was posted by Retail Pro on Tuesday, September 3rd, 2013 at 5:23 am .