(WIFR) – Despite inflation and high interest rates, the NRF says the economy “ended 2024 on a high note.”
National Retail Federation Chief Economist Jack Kleinhenz says “the impressive resiliency of the consumer and a sturdy labor market” contributed to the growth.
Consumer spending grew 5.5% and disposable personal income was up 5.2%, according to the NRF.
“The U.S. economy ended 2024 on a high note and the outlook looks promising for 2025,” Kleinhenz says. “Recent performance shows the economy is on solid footing and has been growing at a steady pace and above its historical average. The labor market is healthy, unemployment is low, inflation has fallen almost to the Federal Reserve’s target even though it remains somewhat sticky, and the direction of interest rates remains lower.”
He says low unemployment rates and wage gains made up for inflation and less employers hiring. Average hourly wages were up 4.4% on average in November 2024, and the amount of ongoing unemployment claims at the end of the year were only 40,000 higher than last year.
The NRF says consumers are still concerned about high prices, but they have high hopes for 2025.
“I don’t want to get ahead of our annual forecast, but there is good reason to expect healthy economic growth in 2025 even though its shape will depend upon a lot of moving parts,” Kleinhenz says, “but the resilience of the U.S. consumer should hopefully remain part of the dominant narrative.”
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