US retailers are feeling shoppers’ Christmas enthusiasm, as Americans, regardless of their income level, boosted their Christmas spending, thus making retailers feel that “Christmas cheer”. Due to the Trump effect on the US economy, i.e. the robust jobs market and the high consumer confidence, the retail sales for the 2017 holiday season rose at their highest level since 2011. The data was made available by Mastercard SpendingPulse, which tracks in store spending as well as online shopping.
According to Mastercard SpendingPulse, sales rose almost five percent from November 1 through December 24, excluding automobiles, vs the 3.7% gain recorded in the same period last year. E-commerce went through the roof, rising by eighteen percent thus driving gains significantly. According to a senior vice president at Mastercard, Sarah Quinlan, the fact that Christmas fell on Monday allowed shoppers to benefit from a full weekend of spending, especially for last minute purchases.
“It started with a bang in the week leading up to Black Friday. “Overall, this year was a big win for retail.”
Department-store giants shares started to become attractive again for investors, with Macy’s and Gap jumping 24 percent and 18 percent respectively in the past month, not to mention Wal-Mart Stores Inc. that has rallied forty percent on the year, trading near all time highs, just like its online archenemy Amazon. According to the executive director of a reputable research firm, Chris Christopher respectively, this year spending was not driven by high income shoppers, unlike in past years:
“Fewer people are living paycheck to paycheck. There is a lot more spending from the lower- and middle-income groups, while the upper-income groups are splurging.”
Funny, on Good Morning America this morning, they were repeating over and over the deadlines to return merchandise. Have good news and a day later turn it to disaster to sabotage. No wonder this country is so disconnected, they want failure redux.
Good economic growth is the result of less regulations – thank you President Trump. With tax cuts effecting 90% of Americans next year we have a lot to be optimistic about in 2018.
Democrats’ economic policies – more regulations, more government spending, higher taxes.Republican economic policies – less regulations, less government spending, let Americans keep the fruits of their labor.
Americans were having a great Christmas, with positive economic outlook. And this is what Democrats want to “resist”. Despite the media’s best efforts to downplay the Trump Economy, there’s a general confidence in our economy right now at the consumer, investor and corporate levels that I haven’t felt in a while.
The biggest single thing that president Trump did to shock our economy into growth, something Hillary or Bernie never would have done, was through executive orders, i.e. to lift the burdensome regulations, thus making it practical for American companies to manufacture in our own country. Add that to the huge corporate tax reduction from 35% (among the highest in the world) to 21%, and it was all it took to get the economy growing and confirm job growth, raises and choice. Huge optimism…thus spending renewed.