Consumers are 'very much out there spending,' says Mastercard's Michelle Meyer

Core Viewpoint - The outlook for consumer spending remains positive despite challenges such as tariffs and inflation, as indicated by the Mastercard Economics Institute [1][3]. Consumer Engagement - Consumers are actively spending, navigating price differentials influenced by tariffs and economic headlines [2][3]. - Retail sales excluding automobiles showed a year-over-year growth of 3.5% in October, aligning closely with the holiday season forecast of 3.6% [3]. Spending Trends - There is an acceleration in consumer spending observed in early November, particularly in apparel and in-store purchases [4]. - The labor market continues to support consumer engagement, although there are mixed signals regarding income levels across different demographics [5][10]. Income Disparities - Higher-income consumers benefit from a strong balance sheet due to equity and home value appreciation, leading to increased confidence and spending capacity [6][10]. - The sentiment surveys may not accurately reflect actual spending behavior, indicating a disconnect between consumer sentiment and spending actions [8]. Inflation Impact - Inflation is affecting various categories differently, with consumers expected to seek value during the holiday season amidst price increases in certain goods, particularly those with high import shares [11][12].