US shoppers came back in force for the holidays, right to the end. After two dreary years, this Christmas will go down as the holiday US citizens rediscovered how much they like to shop.
People spent more than expected on family and friends and splurged on themselves, too, an ingredient missing for two years.
Clothing such as fur vests and beaded sweaters replaced practical items like pots and pans. Even the family dog is getting a little something extra.
“You saw joy back in the holiday season,” said Sherif Mityas, a partner in the retail practice at A.T. Kearney.
A strong Christmas Eve augmented a great season for retailers.
The National Retail Federation predicts spending this holiday season will reach US$451.5 billion, up 3.3 percent over last year.
That would be the biggest increase since 2006, and the largest total since a record US$452.8 billion in 2007. The holiday season runs from Nov. 1 through Dec. 31, so a strong week after Christmas could still make this the biggest of all time. Spending numbers through Dec. 24 won’t be available until next week and final numbers, through Dec. 31, arrive next month.
The economy has not improved significantly from last year.
Unemployment is 9.8 percent, credit remains tight and the housing market is moribund, but recent economic reports suggest employers are laying off fewer workers and businesses are spending more.
Consumer confidence is rising.
“I was unemployed last year, so I’m feeling better,” said Hope Jackson, who was at Maryland’s Mall in Columbia on Friday morning.
Jackson bought laptops and PlayStation 2 games for her three daughters earlier in the season but was at the mall on Christmas Eve to grab US$50 shirts marked down to US$12 at Aeropostale.
Some spending growth online has been driven by free shipping offers and convenience. From Oct. 31 through Thursday, about US$36 billion has been spent online, a 15 percent increase over last year, according to MasterCard Advisors’ SpendingPulse.
Taubman Centers and Mall of America have reported strong clothing sales, which was a hard sell last year. Jewelry sales sparkled throughout the season.
Stores expect solid profits because they didn’t have to slash prices as Christmas neared, analysts say.
Some habits adopted during the recession lingered. Shoppers used cash more and credit cards less.
The final six days of the holiday shopping season are today through Friday. Despite being only 10 percent of the 61 holiday shopping days they can account for more than 15 percent of spending.
For the economy, the key question is whether strong spending this holiday season will continue into the new year.
Still, stores were encouraged by what they saw in the final stretch of the holiday season.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS