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Black Friday is arguably the biggest day of the year for shoppers and retailers. According to the National Retail Federation's annual survey, more than 164 million people plan to shop during the five-day Thanksgiving weekend. However, Black Friday's purchases may not be worth all the hype, at least according to some analysts.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ian Shepherdson, chief economist at Pantheon Macroeconomics, compared purchases made during the holiday season to a marathon saying it's more of a regular run spread over two months and less than 39, a sprint. In addition, Adobe Analytics predicted that the five days between Thanksgiving and Cyber Monday would represent only one-fifth of the $ 124 billion spent online by buyers over the holiday season from November 1 to end of the year. Thus, although remarkable sales figures can be released Friday, many retailers will offer bargains until the New Year. "Data-reactid =" 16 ">Ian Shepherdson, chief economist at Pantheon Macroeconomics, compared purchases made during the holiday season to a marathon saying it's more of a regular run spread over two months and less than 39, a sprint. In addition, Adobe Analytics predicted that the five days between Thanksgiving and Cyber Monday would represent only one-fifth of the $ 124 billion spent online by buyers over the holiday season from November 1 to end of the year. Thus, although remarkable sales figures can be released Friday, many retailers will offer bargains until the New Year.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What is more and more troubling is the lack of transparency on the profitability of Black Friday sales for retailers. "Companies have provided only limited information, which makes it difficult to assess the success of Black Friday. It's not until the new year, when we see more details on the full figures of holiday sales, that we have an idea of how retailers have negotiated, "said Neil Saunders, general manager of the Retail at Global Data."data-reactid =" 17 "> What is more and more disconcerting, is the lack of transparency on the profitability of Black Friday sales for retailers. "Companies have provided only limited information, which makes it difficult to assess the success of Black Friday. It's not until the new year, when we see more details on the full figures of holiday sales, that we have an idea of how retailers have negotiated, "said Neil Saunders, general manager of the Retail at Global Data.
Markets will be open on Fridays for half a day and will be closed at 1 pm AND.
On November 22, 2018, in the United States, buyers pass the Old Navy, in Times Square, in front of New York. REUTERS / Brendan McDermid
Here's what caught the eye of markets correspondent Myles Udland …
This sale does not bother American consumers
Clearly, the stock market has had a bad performance since early October.
The three major US indexes fell by more than 9% from their record highs, the highly fashionable names of FAANG, which propelled the market upward, all fell by more than 20% compared to their highest. high level in 52 weeks.
However, this pain in financial markets does not have a significant impact on the minds of many consumers, which is positive for the US economy as Christmas shopping season approaches.
The last reading of the University of Michigan's Consumer Opinion, released last November, showed that consumer confidence in the lowest third of the income distribution rose by 10.4 percentage points in November. Consumer sentiment at the bottom of the income ladder is a more significant measure for assessing overall habits, as these consumers have a greater marginal propensity to consume, which means that they are more likely to spend every additional dollar of income.
In contrast, sentiment among people in the top third of incomes fell 6.6 points. This is expected to be the case as high income is more likely to own financial assets and therefore be sensitive to market fluctuations. High earners are also less helpful in assessing the general appetite of consumers, as they are more likely to save than to spend extra income.
But overall, this indicates that a theme that we touched on earlier this week remains at the center of concern with respect to economic data: the stock market may be ugly, but the economy is expected to remain strong. Economists at Oxford Economics said Wednesday in their report that "the recent volatility of stock markets weighed on those who held a large majority of shares, while wage gains emboldened those of the lower echelons of income distribution."
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In October, the the economy has created 250,000 new jobs and wages have risen at the fastest pace in nine years. In the third quarter, the GDP grew at an annualized rate of 3.5%; the consecutive quarters of growth in the middle of 2018 have been the best for the economy since 2014."data-reactid =" 38 ">In October, the the economy has created 250,000 new jobs and wages have risen at the fastest pace in nine years. In the third quarter, the GDP grew at an annualized rate of 3.5%; the consecutive quarters of growth in the middle of 2018 have been the best for the economy since 2014.
And for many consumers, the economy is considered good or bad simply by employment or not; for about 2.5 million Americans in the past year, the answer to this question has become yes.
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