Despite the high levels of economic anxiety that Americans expressed earlier in the year, shoppers spent 3.8% more in the 2024 holiday shopping season than in the previous year. The holiday shopping season is typically measured from the beginning of November to December 24th. Ten percent of total spending occurred in the final five days of the season. The major rise in sales occurred online, up 6.7%, but in-person sales also rose 2.9%.
The holiday shopping data excludes automobiles, however auto and auto part sales were up significantly during that same period, largely due to storm damage incurred during hurricane season. However, the data show that sales growth was largest for jewelry, apparel, and electronics, indicating despite the weather, households were eager to share the holiday cheer.
Discussion Questions:
- If consumer spending rises and Amazon builds a new distribution center in response to increased demand, which components of GDP are affected.
- If consumers purchase holiday gifts in 2024 using credit cards, and they pay their credit card bills in 2025, how is GDP affected in 2024 and 2025?
Sources| Motley Fool Money: https://www.fool.com/money/research/2024-financial-stress-anxiety-and-mental-health-survey/; PBS News: https://www.pbs.org/newshour/nation/u-s-consumers-increased-holiday-spending-this-year-even-as-they-battled-higher-prices; ABC News: https://abcnews.go.com/Business/holiday-shopping-surges-flexing-strength-us-economy/story?id=117114502; Unsplash: Photo by Heidi Fin on Unsplash