Retail Spending Remains Resilient Despite Growing Economic Disparities and Geopolitical Risks

Story Summary
While credit and debit card data through late 2025 indicates healthy consumer spending, Moody’s Ratings analysts warn that retail performance is increasingly bifurcated. Growth is currently driven by affluent households, while price-sensitive consumers prioritize essentials. This reliance on high-income cohorts creates credit risks for retailers, further compounded by potential volatility in gas prices stemming from the ongoing war in Iran.





