American consumers have shown remarkable resilience as the economy has rebounded from the depths of the pandemic. Overall spending has remained robust, despite elevated inflation and rising interest rates. But that could be changing. Lower-income consumers have started to show cracks in demand, and that ... READ MORE >
U.S. inventories are growing at twice the rate of sales
With demand remaining strong, middle market firms have been increasing their inventories during the current quarter, with just under a majority expecting to do so over the next six months, according to the RSM US Middle Market Business Index. Inventories are now growing at twice the rate of ... READ MORE >
Consumer products M&A insights
The market for mergers and acquisitions in the consumer products industry has cooled from the frothy levels of a year ago. Closed deal activity slowed for the fourth consecutive quarter, according to data from PitchBook. This trend has continued as investors remain cautious given the uncertain economic ... READ MORE >
Consumer products holiday season insights: Thanksgiving holiday sees consumers continue to spend
Over the Thanksgiving weekend, consumers showed they are not yet ready to pull back on the robust spending that has driven economic activity over the last three years. Consumers equipped with $1.8 trillion of excess savings, compared with the first quarter in 2020 (approximately 80% held by the upper two ... READ MORE >
Consumer products holiday season insights: Retail holiday shopping expected to be strong this year
With the holiday shopping season already begun, RSM forecasts nominal retail sales from October through December to increase between 6.5% and 8.0% on a year-over-year basis. Given that October retail sales are set to be released on Nov. 16—and because of a shift in consumer and retailer shopping ... READ MORE >
Consumer products M&A insights from the third quarter
Based on information available as of Oct. 23, 2022 from PitchBook Data, Inc., consumer products closed deal activity continued to slow, contracting for the third consecutive quarter. Current economic challenges, including inflationary pressures and the resulting shift in consumer discretionary spending, ... READ MORE >
Back-to-school consumer business outlook: Did consumers pull back on spending?
In our four-part blog series, RSM’s senior industry analysts explore back-to-school shopping trends and the impact on consumer businesses. In our final post, we provide a look back at spending habits and what’s to come for the holidays. As we enter the second half of September and with students back in ... READ MORE >
Consumer products M&A posts second straight quarterly slowdown
Deal activity in the consumer products sector contracted for the second consecutive quarter to the lowest level since third quarter of 2020, based on information available through July 22. The slowdown comes as market uncertainty curtailed deal urgency and valuations, and as participants continued to ... READ MORE >
Have we entered a “goods-cession” or goods fatigue?
In the June 2022 real consumer spending data released by the Bureau of Economic Analysis on Friday, on a three-month annualized basis, spending on both durable and non-durable goods declined for the second consecutive month, furthering the evidence we are in the midst of a “goods-cession.” After a ... READ MORE >
Back-to-school consumer business outlook: How will no enhanced child tax credit affect shopping?
As consumers enter the peak back-to-school shopping season (July through September), retailers and other consumer businesses are beginning to make room for backpacks, clothing, school supplies and other back-to-school needs. This season will certainly be different from last year, as consumers are in a ... READ MORE >