{"id":3682,"date":"2022-11-22T15:37:07","date_gmt":"2022-11-22T14:37:07","guid":{"rendered":"https:\/\/magazine.lineapelle-fair.it\/?p=3682"},"modified":"2022-11-22T15:47:53","modified_gmt":"2022-11-22T14:47:53","slug":"the-geopolitics-of-consumption-between-energy-emergency-and-inflation","status":"publish","type":"post","link":"https:\/\/magazine.lineapelle-fair.it\/en\/focus-en\/the-geopolitics-of-consumption-between-energy-emergency-and-inflation\/","title":{"rendered":"The geopolitics of consumption between energy emergency and inflation"},"content":{"rendered":"

Inflation and high energy prices weigh like boulders everywhere. But if in the USA, despite a slowdown in sales, people continue to spend, in Europe, the will to buy is (much) less carefree. While in Asia, in our geopolitics of consumption, the light of Seoul does not dispel the Chinese shadows and Japanese hesitancy<\/strong><\/em><\/p>\n

 <\/p>\n

Between the end of <\/strong>tourist shopping and the beginning of <\/strong>Christmas shopping. With inflation <\/strong>and high energy prices <\/strong>weighing like boulders. Problems are common to <\/strong>all consumers who, however, are reacting differently. For example, in the USA, they are <\/strong>showing that their desire to spend is still strong. So do the Chinese <\/strong>who, however, are being held back by Beijing’s zero Covid policy. <\/strong>On the other hand, Europe is suffering: last summer, it was saved thanks to the purchases of American tourists <\/strong>enticed by the new dollar\/euro ratio. Here, then, is our necessary attempt to draw the geopolitics of consumption <\/strong>in late 2022.<\/p>\n

The geopolitics of consumption<\/strong><\/h3>\n

Europe<\/strong><\/h3>\n

In <\/strong>many European countries, inflation hit a record high. <\/strong>In Italy, <\/strong>consumption fell by 12% in October, the same percentage with which inflation rises. Fixed costs are rising, and 11,000 small <\/strong>clothing, accessories, and footwear businesses were ready to close. Also in October, in France, <\/strong>sales of clothing and accessories in shops fell by 6.1% <\/strong>year-on-year, according to the Panel Retail Int. pour l’Alliance du Commerce<\/strong><\/a>. A disappointing trend that the association attributes to unfavourable weather (too hot) and rising fuel costs that curbed travel to shopping centres.<\/p>\n

In the UK, <\/strong>lifestyle retailer Joules <\/strong>(132 stores and 1600 employees) went into administration. The British Retail Consortium (BRC) reported that the rising cost of living is having a negative impact on retail sales. And the unusually mild weather is also penalising clothing and footwear<\/strong>. Many families are putting off shopping in anticipation of Black Friday and the Christmas sales that will start earlier than usual.<\/p>\n

United States<\/strong><\/h3>\n

US\u00a0retail sales increased<\/strong> in October as\u00a0consumers continued to spend\u00a0<\/strong>despite rising prices. Fourth-quarter GDP estimates were up as inflation began to show signs of cooling. According to the Bureau of Labour Statistics, consumer prices increased 7.7 percent in October compared to last year. That’s a slowdown from 8.2% in September. There is\u00a0a brisk labour market,\u00a0<\/strong>and\u00a0excess savings\u00a0<\/strong>from pandemic lockdowns will be the fuel for Christmas shopping. “Spending has gradually slowed but remains\u00a0solid<\/strong>. Consumers continue to\u00a0show resilience\u00a0<\/strong>despite high inflation, rising borrowing costs, and widespread macroeconomic uncertainties,” says\u00a0Jack Kleinhenz<\/strong>, chief economist at NRF – National Retail Federation.<\/p>\n