WEST PALM BEACH, Fla. — After a slowdown in retail at the end of 2022, consumer spending is up again.
WPTV looked at where the largest increases are happening and what it means to the economy.
Shoppers were taking advantage of Presidents Day sales Monday with overall retail spending up 3% from December. This is the largest jump in nearly two years.
However, a big part of consumer spending is still going to gasoline stations and grocery stores.
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When it comes to spending, Virginia Smith can't turn away from a good sale.
"I just bought another piece of kitchen decorations that I don't need, but I liked them," Smith said.
The average consumer doesn't appear to be tapped out.
According to the latest commerce report, national retail sales came back strong in January after a decline in December.
"Consumer spending was really, really strong. Some of that was aided by gift cards," Greg McBride, a chief financial analyst at Bankrate.com, said. "They're actually counted when they are redeemed, not when they're purchased."
McBride said gift card use at the beginning of the year may be responsible for the January boost in department store and restaurant sales. Still, gas and groceries drive a big part of consumer spending, leaving many with no room to splurge.
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"I just don't have it. Between bills and helping out with my family, I just don't have money anymore," Jacob Cotner, who was buying gas Monday, said.
Inflation is tightening budgets for many consumers. The U.S. personal savings rate is down 75% in December compared to one year ago.
However, the average credit card debt in Florida is just over $7,000, according to LendingTree.
"The perpetual battle that retailers are in, particularly at times of economic uncertainty, is capturing the limited dollars that consumers have to spend," McBride said.
Despite inflation, many shoppers haven't changed their spending habits.
"We try to budget, but we need to shop," shopper Lizeth Vasquez said.