What: The slower growth is the result of conflicting forces taking place on the market.

Why it is important: Revenge spending is here, but somehow toned down by high prices, coming as a consequence to the global logistical issues, questions about the economic outlook, and a persistent fear of the virus, coming at the expense of high-contact retail activities.

Retail sales rose 0.8% from August to September 21, after a more robust +2.1% from July to August 21. Customers increased their purchases on groceries, while general merchandise, personal care, electronic stores decreased compared to August. Visa attributes this phenomenon to a persistent fear of the virus, which is coming as a conflict with a high level of savings and a strong will to consume.

Visa also notices that customers’ confidence is decreasing in September, due to high prices (linked to the global logistics bottleneck) and questions about the job market.

Visa Report