US Retail Growth Slows Amid Inflation, Treasury Secretary Predicts No Recession in 2024

Retail growth in the United States is showing signs of deceleration, with September's retail sales expected to increase by just 0.4%, down from 0.6% growth in July and August. This slowdown is largely attributed to inflation pressures impacting consumer spending across all income levels, including the wealthy, according to economic analysts. The easing retail momentum signals broader economic challenges ahead.

Despite these headwinds, US Treasury Secretary Scott Bessent reassured that the US economy is not expected to enter a recession in 2024. Speaking on NBC News' 'Meet The Press,' Bessent highlighted his optimism for 2026, forecasting solid, non-inflationary economic growth. He acknowledged difficulties in several sectors, notably housing and interest-sensitive markets, but praised the stimulative effects of recent Republican budget measures, including tax cuts and local government aid. Bessent also expects healthcare costs, which have seen recent increases, to stabilize soon and anticipates that falling energy prices will help reduce overall inflation.

These developments in the US economy carry implications for global markets, including Sweden, which remains economically interconnected with the United States. The tempered retail growth combined with cautious optimism from US officials paints a complex picture for Sweden's export and investment environment moving forward.