The U.S. economy ended 2024 on a strong note, paving the way for growth in 2025, according to the National Retail Federation (NRF). With low unemployment, steady wage gains, and falling inflation—now at 2.4% year-over-year—consumer spending remains resilient. Core retail sales, which include hardware and home improvement products, rose 4% year-over-year during the holiday season, signaling continued demand for tools, materials, and home improvement essentials.
Lower interest rates are also on the horizon, with the Federal Reserve expected to reduce rates by half a point in 2025. This shift could unlock more opportunities for homeowners to invest in larger renovations and DIY projects, particularly as wages outpace inflation. With consumer confidence expected to stabilize, the hardware and home improvement sector is well-positioned for a promising year ahead.
For more on the NRF’s economic outlook, check out the full article here.
