Spending upswing in early 2018 marks most significant shift in spending since declines at the end of 2016.
In the first quarter (Q1) of 2018, U.S. retail spending climbed, following years of subpar results. Spending by Hispanic communities are a key contributor to the uptick, according to The NPD Group, a global information company.
NPD’s Retail Tracking Service shows that U.S. retail spending on general merchandise categories at brick and mortar rose 8% in in Q1 2018, compared to Q1 2017, outpaced by increases in the top 20 Hispanic core-based statistical areas (CBSAs), which showed 12% growth during the same period.
The upswing that occurred in the beginning of 2018 is the most significant shift in spending since declines seen at the end of 2016. Overall retail spending and spending among Hispanic consumers in the U.S. have both been on the rise over the last few quarters, and there is a visible correlation between the two.
“Unlike last year, Hispanics are spending, which leads to a very different story for this important market and U.S. retail in general,“ said Marshal Cohen, chief industry advisor, The NPD Group Inc. “As Hispanic shoppers continue to feel more confident with the immigration policy and their improved job market, they resume their pre-election slowdown position of outpacing overall U.S. consumer spending.”