Backpacks, Laptops and Sneakers

Michelle Weaver, a U.S. thematic and equity strategist at Morgan Stanley, discusses back-to-school spending as an indicator of consumer sentiment and the broader market. While consumer confidence is declining and inflation remains a major concern, back-to-school spending shows resilience, with a significant portion of consumers planning to spend more than last year, particularly on apparel, footwear, and school supplies. Despite economic anxieties, travel remains a priority for many consumers. Weaver concludes that while consumer sentiment is cooling, spending on seasonal needs is holding up, suggesting potential bright spots for retailers in the coming months.