Academic

WHY THEY?D RATHER TALK ABOUT SARAH PALIN (CONT?D): Holiday Spending Record Not As Good As It Looks?.

By Glenn Reynolds

WHY THEY’D RATHER TALK ABOUT SARAH PALIN (CONT’D): Holiday Spending Record Not As Good As It Looks.

This past season’s revenue marked a 5.7 percent increase over holiday 2009. That’s the strongest gain since 2004. While encouraging, that doesn’t mean shoppers have recovered from the loss of $11 trillion in household wealth. From consumers’ perspective, the economy hasn’t improved dramatically from last year, as credit remains tight, unemployment hasn’t budged below 9 percent, and home values are still depressed. Consumer confidence is hovering at the same level as a year ago and well below the point that signals a stable economy. . . .

In several categories, spending on gifts fell short of shoppers’ 2007 outlay. In 2010, consumers spent $50.7 billion on clothing and accessories like shoes and scarves; in 2007, that figure was $51.3 billion even before adjusting for inflation. Holiday revenue at department stores was $45.3 billion last year, much less than the $50.4 billion that traded hands in 2007.

Read the whole thing. It’s better than last year, but it’s not exactly “Happy days are here again.”

Full post as published by Instapundit.com on January 16, 2011 (boomark / email).