NEW YORK (Reuters) - U.S. stocks declined moderately on Monday as weak data on holiday retail sales prompted questions about the consumer's ability to spend. The S&P Retail index (Chicago Options:^RLX - News) fell 1.3 percent after the National Retail Federation said that total Black Friday holiday spending was down from last year, suggesting that consumers were still reluctant to spend. "So far, the numbers don't look very strong," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville.
3 comments:
This data indicates that consumer confidence is still very low. Black Friday holiday spending was one percent less than last year. Hopefully, Christmas sales will be more active.
I have read related articles suggesting an encouraging opening of the holiday shopping season, with larger, more enthusiastic crowds than last year. Retailers noticed that consumers seemed more willing to spend money on themselves than they had been a year ago. However, many of Friday's shoppers seemed to stick to lists and take advantage of discounts, rather than give in to impulse purchases. It seems that consumers are just more realistic and more accepting of the economy and where their personal situation is this year. Many have suggested they have never seen the American consumer shop so strategically.
I agree that although Black Friday sales are down, it may not mean that consumers were not shopping but simply not excess shopping. In the past, when consumers had more confidence and willingness to spend, there may have been more consumer impluses to buy extra items that were not always needed. This year, people seemed to buy simply what they need and not any excess.
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