In the US the holiday season does create in increase in consumption. Although, Halloween is not really known as a big money spending holiday it is easy to overlook with Christmas just two months away. This fall holiday is a kickoff to the increase in American consumption in a way. In this link it is stated that this year Halloween is expected to bring in an $8.4 billion revenue. This could be indicative of future growth in consumption for the holidays around the corner. With this "all-time high" revenue it could be seen as possible that the economy is in a growth period and could possibly reach Donald Trump's vision of 4% in Consumption.
Its interesting how big holidays such as Halloween and Christmas can drastically boost revenue from consumption. I was also fascinated by the fact that the expected revenue of $8.4 million was an all time high for the halloween holiday.
ReplyDeleteThe $8.4 million from just Halloween is stagggering. Maybe if we had more holidays, our economy would be better and college students would be happier too. On a serious note, this just shows why and how consumption is the most important part of our GDP.
ReplyDeleteIt is not surprising to see the expected revenue to be $8.4 for Halloween. The high rise in demand causes a drastic hike in prices during the holiday season. For example -The price of flight tickets increases about 3 times of its actual price during Christmas.
ReplyDeleteIt isn't hard to believe that holidays such as Halloween and Christmas bring in a large amount of revenue. Consumption around holidays like New Years or even Valentines Day are an easy way for businesses to Get people to spend more than they normally would. Even during the Super Bowl last year, according to CNBC, they produced a gross economic impact of 719.4 million. Exploiting the holidays is a good way to get short runs of high economic growth.
ReplyDeleteIs very interesting to see how the holidays increase the consumption and boost the economy. Taking this into account it would be interesting to know how for example the Fed looks at these holidays in order to take decisions like the level of the interest rates. As many economist believe the Fed is going to rise the interest rates in December, it would be interesting to know if they are waiting until December so they have holidays like halloween and Thanksgiving before that to boost the economy and then rise the interest rates.
ReplyDeleteConsumers do tend to do more compulsive shopping during holiday seasons, which benefits a lot for companies with products or services that are adapting the trend. A lot of companies are creating their ads or strategy based on this trend to make more profit during the holidays.
ReplyDeleteSorry everyone, there was a typo in my original post. The estimated revenue was $8.4 billion.
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