Holiday sales fell apart at the end, but still a record
|Pandemic Holiday: Earlier Goods Spending Surge Led to a Poor Finish
A shift to goods spending earlier in the year set up retailers for a big annual increase; the numbers are in and holiday sales shot up 8.7% in 2020, just shy of our call for a 9.0% gain. Despite that solid increase, the climate during the closing months of 2020 was one of fading momentum. Like a football game when your team is off to an early lead that fades in the fourth quarter; the categories that comprise holiday sales posted outright declines in the final on ths of the year. The big gains earlier in the year were ultimately what made it happen, as we said it might. Despite a deteriorating labor market at the end of the year, curtailed spending in the service sector and canceled travel plans freed up income for spending on gifts. After the anxiety and stress of a year defined by the virus and a divisive election, a yearning for comfort and normalcy underpinned holiday spending—most of which just happened earlier than usual.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.