Economic growth in the US is off to a better start than expected this year, thanks largely to a long-awaited pickup in consumers buying “stuff” again after they shifted spending to experiences in 2022. Shoppers have been spurred by a rapid deceleration in goods inflation, reducing some of the risks associated with a softening in the labor market.

On an inflation-adjusted basis, goods consumption climbed 5% year-over-year in December, its fastest growth since early 2022, with strong demand in both the durables and non-durables categories.