Posted by Leslie Eastman Wednesday, December 25, 2019 at 1:30pm
Santa appears to be delivering some good economic news this Christmas season for President Donald Trump, as his economic policies seem to have created a flurry of both spending and earning.
The Bureau of Economic Analysis (BEA) has reported personal income rose $101.7 billion (0.5%) in November, exceeding the previous projections it had made. The gains were primarily related to employee compensation.
Forecasts ranged from a low of 0.2% to a high of 0.4%. The consensus forecast was 0.3%.
Disposable personal income (DPI) rose $87.7 billion (0.5%) and consumer spending continued to come in stronger than expected. Personal consumption expenditures (PCE) gained $64.9 billion (0.4%).
Forecasts ranged from a low of 0.2% to a high of 0.5%. The consensus forecast for spending was 0.4%.
Generally, those who aren’t Democrats like to earn money before they spend money. All this income has resulted in record holiday shopping the weekend before Christmas. Super Saturday sales hit $34.4 billion, the biggest single day in U.S. retail history.
Super Saturday’s results topped Black Friday’s $31.2 billion in sales by 10%. The next biggest shopping days were Dec. 14, with $28.1 billion, and Cyber Monday, with $19.1 billion.
While foot traffic was down at most malls, the conversion rate, or the percentage of people who go to malls and make a purchase, rose, Johnson said. Even long-struggling department stores “had their best weekend of the season,” he said.
Christmas Eve revenues look promising, as there was so much traffic at some stores their register system crashed (at Krogers stores.)
Finally, stocks climbed higher on Monday, hitting new records and continuing what appears to be a year-end rally.
Investors cheered the news that China will cut import tariffs on a wide range of goods. China’s finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors. China is making efforts to boost imports amid a slowing economy and a trade war with the U.S.
“Stocks are grinding relentlessly higher into year-end on continued momentum from the positive resolution of four key events: A phase one trade deal, a dovish Fed, economic data that isn’t getting worse and Brexit resolution,” Tom Essaye, founder of Sevens Report, said in a note on Monday.