David Nicholas, chairman and founder of Nicholas Wealth Management, says the American consumer “single-handedly carries the global economy on their shoulders” despite the inflation seen at “Varney & Co.”
Shoppers are expected to spend a record $14 billion during this year’s Prime Day, Amazon’s two-day sales event.
Adobe Analytics, which analyzes more than $1 trillion in online commerce transactions, predicts that the first day of the event will generate $7.1 billion in online spending, up 11.3% from last year. The second day is expected to generate $6.9 billion in online spending, up 9.2% from last year.
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An Amazon Prime delivery person in a van sorts packages, Queens, New York. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
Buy now, pay later (BNPL) services continue to drive some spending as they offer shoppers more flexible ways to manage their expenses, particularly at a time when households are spending more on everyday needs.
These services generated more than $39 billion in online spending between January 1 and June 30. That’s a 12% increase year over year, according to Adobe.
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Adobe predicts a “substantial increase” in BNPL usage over the next two days, driving between $1.09 billion and $1.11 billion in total online spending.
Packages on a conveyor belt at an Amazon fulfillment center on Prime Day in Melville, New York, July 11, 2023. (Photographer: Johnny Milano/Bloomberg via Getty Images / Getty Images)
Online spending has already surpassed $500 billion in the first six months of the year, up 7.4% year-on-year, according to Adobe data.
Between July 1 and September 30, Adobe forecasts that consumers will collectively spend $229.1 billion online, representing year-over-year growth of 7.2%.
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Adobe attributes the strong consumer demand to net new demand rather than rising prices.
Online prices have fallen for 22 consecutive months and were down 4.2% year-on-year in June.
Adobe does not account for inflation. However, if online inflation were taken into account, the consumer spending figure would be even higher.
News Source : www.foxbusiness.com
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