Holiday Shopping Signals Broader Economic Health, December Spending Key Barometer
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Retail spending in December is on average 17% higher than other months, showing the importance of holiday shopping for the economy.
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When consumer holiday spending drops, like during recessions, it signals problems in the broader economy.
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Government stimulus money in 2020 contributed to increased December spending and economic recovery.
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Fourth quarter GDP is almost always higher than other quarters, also showing the economic impact of holiday spending.
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Economists will be watching 2023 holiday spending closely to gauge recession risk and the health of the economy.