The University of Michigan’s latest survey reported that US consumer sentiment fell to 50.3 on a 100-point index this month – down 6.2% from October, and down 29.9% year-on-year – nearing its lowest-ever levels. At the same time, data shows that apparel and footwear prices are up over last year. This combination could set up a fraught holiday shopping season.

Clothing and beauty are among the top three categories where consumers are still planning to spend this year, alongside electronics, per BCG’s recent report on year-end sale events. Roughly half (52%) of consumers intend to shop on clothing, consistent with 2024, and 33% plan to spend on beauty, up 3% from last year. The US did, after all, drive luxury growth in the third quarter. But this growth was driven by a relatively tight

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