Despite consumer caution, holiday spending is on track to pass a trillion dollars this year and set a record.
The prediction comes from the National Retail Federation, which says consumers plan to spend almost $900 per person on average.
The NRF says retail sales are expected to rise as much as $4.2% from last year.
The group does point to ongoing challenges, including the government’s shutdown, trade uncertainty, and persistent inflation.
Retailers are expected to absorb some tariff costs to avoid major price hikes on essential items.