‘Fiscal cliff’ worries affect holiday spending

Written by admin   // December 31, 2012   // 0 Comments

Last-minute shoppers crowded into malls and stores during the last weekend before Christmas, but many didn’t seem to be in the spending spirit.

This holiday season, Americans have a lot on their minds on top of the now familiar job worries.

Consumers in the Northeast and mid-Atlantic, who account for 24 percent of retail sales nationwide, were tripped up by Superstorm Sandy in late October. Damage from high winds and flooding disrupted businesses and households for several weeks.

Shoppers are also increasingly worried about the fast approaching “fiscal cliff” deadline – the possibility that a stalemate between Congress and the White House over the U.S. budget could trigger a series of tax increases and spending cuts starting Jan. 1.

Confidence among U.S. consumers dropped to its lowest point in December since July because of growing concerns about the economy, according to a monthly index released Friday. And the Newtown, Conn., school shootings also dampened shoppers’ spirits, analysts said.

This confluence of factors has led to a muted approach to holiday shopping – bad news for retailers, which can make up to 40 percent of annual sales during November and December and were counting on the last weekend before Christmas to make up for lost dollars earlier in the season. The Saturday before Christmas was expected to be the second biggest sales day behind the Friday after Thanksgiving.

“It’s so hard to put yourself in the mood,” said Linda Fitzgerald, 51, a nurse from Yonkers, N.Y., who was with her 17-month-old granddaughter at the Garden State Plaza in Paramus, N.J., on Saturday. She was out Christmas shopping for the first time this year.–Associated Press  



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