Back To School Spending Down

Back to school shopping is expected to be down 10% this year. It's the first drop since 2014.

Transcript

00:00 (soft music)

00:02 Parents are gonna be hit with sticker shock

00:08 when the summer is over.

00:10 Shopping for back to school essentials

00:11 such as clothes, shoes, and electronics

00:14 will be a bigger struggle for families this year

00:17 who are trying to manage their household budgets

00:19 with less disposable incomes because of inflation.

00:23 Back to school spending by parents

00:25 with children grades K to 12

00:27 is expected to decrease 10% this year over last year

00:32 to $597 per student.

00:34 The last time there was a decline

00:36 in back to school spending was in 2014.

00:39 Although US consumer spending has remained strong

00:42 even as inflation has taken a bite

00:44 out of discretionary purchases,

00:46 the economy is starting to show cracks.

00:49 Retailers including Target and Home Depot

00:52 have reduced their profit and sales outlooks

00:54 in recent months as Americans start to hold back

00:57 on their discretionary purchases.

00:58 [MUSIC]