OUTLOOK

Throughout Q1 retail sales in most key markets held up better than expected.  While economies avoided slipping into a ‘technical recession’, rising prices for daily necessities are taking a toll on consumer sentiment, even those whose wallets can withstand the higher prices.  

Heading into Q2, and out of winter, consumers will feel less impact from energy prices.  However inflation is still with us.  And so are rising global tensions. In addition, the recent bank failures has consumers wondering if a financial crisis might be imminent. Thus we can expect consumers to think more before purchasing, to spend more effort looking for value (not merely cheaper prices) and to delay purchasing things that are not necessities.