What: According to Visa, consumer confidence was on the rise at the end of 2022.

Why it is important: US customers’ morale is going to stay as important in 2023 as it was in 2022, especially for European department stores.

According to Visa, the consumer confidence index has been at its highest point in 8 months last December, both when it comes to present situation and future expectations. This positive result was fuelled by the decrease of gas prices (-12% vs. November and -34% vs. June) as well as an easing inflation.

As a consequence, purchase intentions remained steady for autos but softened slightly for homes and major appliances. Holiday spending increased marginally from November. However financial concerns have made their way into holiday spending plans, with consumers taking on debt as well as altering spending plans based on their pricing perceptions.

US customers confidence remained positive for 2022… 2023 is another story