Americans to hold wallets tighter for holidays
Monday, 19 November 2007
WASHINGTON, Nov 18 (AFP): US consumers, battered by a horrific housing slump and soaring energy costs, are expected to show caution in holiday spending this year, putting more pressure on retailers and the overall economy, analysts say.
Surveys project tepid growth in gift spending for the holiday shopping season set to begin Friday, the day after the Thanksgiving Day holiday.
The grim outlook has retailers starting early promotions and discounts to get consumers out and ensure that stores are not stuck with too much merchandise.
The National Retail Federation is projecting a 4.0 per cent rise in holiday spending. A separate survey by Ernst & Young suggests growth of 4.5 per cent.
Ratings firm Standard & Poor's predicts general merchandise sales to rise only 3.0 to 3.5 per cent, well below increases of 4.9 and 5.8 per cent in 2006 and 2005, respectively.
That would keep nearly flat the 250-billion dollar holiday shopping season in November and December that typically accounts for about 23 per cent of annual retail sales and even more in profits, according to S&P.
Surveys project tepid growth in gift spending for the holiday shopping season set to begin Friday, the day after the Thanksgiving Day holiday.
The grim outlook has retailers starting early promotions and discounts to get consumers out and ensure that stores are not stuck with too much merchandise.
The National Retail Federation is projecting a 4.0 per cent rise in holiday spending. A separate survey by Ernst & Young suggests growth of 4.5 per cent.
Ratings firm Standard & Poor's predicts general merchandise sales to rise only 3.0 to 3.5 per cent, well below increases of 4.9 and 5.8 per cent in 2006 and 2005, respectively.
That would keep nearly flat the 250-billion dollar holiday shopping season in November and December that typically accounts for about 23 per cent of annual retail sales and even more in profits, according to S&P.