/ The mood is cautious, but spending continues as shoppers trade down, splurge selectively, and search harder for value.

For the past two years, consumer sentiment surveys in the U.S., Europe, and the UK have painted a gloomy picture. Households say they are worried about inflation, rising costs, job security, and the broader economy. Economists repeatedly warned that this pessimism would eventually lead to a sharp pullback in retail spending.

But that hasn’t happened.

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