This year’s projected back-to-school spending total falls short of 2023’s record of $41.5 billion.
Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The Dow and the S&P 500 are marching back towards record highs with markets likely to see a test of wills in coming days. Nvidia, the leading AI chip maker, is set to release quarterly results this week. It will either show the AI revolution is still going strong or fuel speculation the technology is being overhyped.
In other business headlines: 2024 is likely to be the second biggest back-to-school shopping season on record. American families are expected to spend $38.8 billion on school supplies, which works out to roughly $875 per household, according to the National Retail Federation. That’s down from last year’s record of $41.5 billion
The retail group says price-conscious consumers have been on the prowl since early summer. “The back-to-school and college season is an important time for retailers and consumers. Retailers have anticipated this early demand and are well-positioned to offer a variety of products at competitive prices.”
Shoppers are seeing lower prices on many items compared to last year. Market research company Circa found prices for sticky notes are 22 percent cheaper, paper costs 20 percent less, crayons are down 19 percent, and pencils have been slashed by 13 percent.
And there’s more good news for parents. Clothing prices have barely risen year over year, according to the government’s consumer price index for July. Meanwhile, for the first five months of 2024, children’s footwear prices dropped 1.2 percent from the same time a year ago, according to data from Footwear Distributors and Retailers of America.
Back-to-school shopping season is closely scrutinized as it is seen as a barometer for consumer spending heading into the crucial holiday shopping season.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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