US Holiday Spending Falls Flat
High unemployment rate, low salary, and decreasing job security in the United States are pushing holiday spending into a flat progress as American consumers save up in an unprecedented rate as lessons of the recession was put in mind of the people, a retail research group said on Monday.
Due to the increasing number of cautious and unemployed American consumers, the US holiday spending is expected to fall flat compared to the same period last year, a late Sunday forecast by retail group Deloitte said.
Based on the study, Deloitte said that the holiday sales will just fall around $810 billion or just 2.4 percent compared a year ago as unemployment at the national level reached 10 percent.
The report, however, does not include sales of motor vehicles and the ever high priced petroleum products from November to January.
The retail industry expressed concerns over the low growth of the year-over-year sales, saying that the increase is “hardly” encouraging to manufacturers, which are all hoping for a better turnout of business after the recession ends.
“Due to the fact that Americans have learned in the hardships during the recession, they continue to save up at a record-high rates forcing the retail industry into a flat year-over-year sale,” Deloitte Research chief economist Carl Steidtmann said in a statement.
He added that consumers remained burdened by the rising fuel prices and unemployment, which directly impact the retail market.
However, these factors are sending mix signals to the economy as strengthening home values and huge acquisitions in the stock market makes it more viable for American buyers to spend for the winter holiday, specially with the coming Thanksgiving Day.
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