"I think until the issues are resolved that are making news these days, we're not going to see a very large rebound in the middle of the economy and in consumer confidence"
- Bill Simon, Walmart U.S. CEO
Americans, who are working at a low-paid job and receive a minimum wage, can be thankful the 16-day long government shutdown for being on the job this Friday. This year a record number of retailers are going to offer goods, allowing consumers to spend their savings on America's most storied holiday. According to the U.S. Retail Federation, sales between Thanksgiving Day and Christmas Eve represent almost 40% of retailers' annual sales.
Before the political disputes in Washington over the budget, U.S. retailers were poised to report on solid sales this year. The latest estimates are showing retail sales will be 4% higher this year, twice the growth rate of the world's largest economy. Moreover, consumer were expected to spend $786 on gifts over this year. Nevertheless, the recent government shutdown changed it all. While it is difficult to predict the possible impact of consumer spending for the fourth quarter's GDP, employees across the country will be forced to increase hiring to ensure that companies will meet their financial targets, which were highly jeopardized by a government lockout. Taking that into account, we can anticipate better data from the labour market, which is considered as a key indicator of economic health by the U.S. central bank.
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