Why is retail spending so important in the US

Jay Soloff

Argonath Financial

Why is retail spending so important in the US? As the holiday season is almost upon us, the markets will be laser-focused on retail data as it emerges. As government activity typically slows to a crawl over the holidays and there are no corporate earnings in sight, many believe seasonal spending numbers are the only thing to watch. But it's much more than that. Retail spending is typically 70% of GDP in the US. It's not the big companies building fancy manufacturing plants or even the government building aircraft carriers that drive the US economy - it's families going to the mall on Saturday. Moreover, if consumers spend big over the holidays, companies are more likely to hire at the beginning of 2014. More hires mean more consumers with money and more expansion opportunities for businesses, which in turn means more spending!

Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment