Americans expected to spend more this Christmas than last year (Gallup)

Adults in the United States are expected to spend an average of 720 US dollars on gifts this Christmas, up slightly from a 704 dollars estimate in November last year, indicating a so-so holiday season for American retailers, said a Gallup poll released Monday.

The news comes as the US economy slowly slogs toward recovery after the worst recession in decades, and reflects a clear but painstaking improvement in the economy, although millions still remain unemployed and wages remain stagnant.

Moreover, trends reflect what some economists and observers believe may be a new normal -- instead of the type of robust recovery that prior recessions have seen, the US is seeing less spending, lower wages and high jobless rates. Some even fear this could be a lost decade for many young people just entering the workforce, who for years may be unable to secure a good job in their field, which could dramatically impact their lifetime earnings.

Barring a major economic crisis or harsh winter weather that curbs Americans' willingness to shop, consumers seem on track to spend a bit more on Christmas gifts this year than they did last year. But even if consumers' spending reaches the high end of the range indicated by their current spending forecast, US retail sales growth for November and December would still barely hit the 14-year average of 3.1 percent, suggesting Christmas sales still aren't what they used to be, Gallup said in a report accompanying the poll.

Overall, a quarter of Americans plan to spend 1,000 dollars or more on gifts, and another 21 percent will spend at least 500 dollars. At the other end of the spectrum, 24 percent expect to spend less than 250 dollars, and 15 percent will spend between 250 dollars and 499 dollars. Nine percent of Americans tell Gallup this year that they won't spend anything or don't celebrate Christmas, Gallup said.

Though up from 2013, the current spending estimate is well below the November reading in several earlier years, particularly in 2006 and 2007, when the data exceeded 800 dollars, according to Gallup.

Since posting a solid 3.7 percent gain in 2010 after the highly anemic recession-era sales of 2008 and 2009, holiday retail sales have grown by smaller amounts each year. Thus, given last year's disappointing sales gains, an increase of 2 percent or larger may be a welcome sign for retailers, Gallup found.
 Source:Xinhua - globaltimes.cn
25/11/14