LAKE COUNTY, Calif. – The holiday shopping season, now nearing its end, has produced some hope and good news for businesses around the nation, as well as those right here at home.
Since the recession officially started in December 2007, consumer spending has been sluggish compared to that seen during the several years previous.
That trend has continued over the last few years, as people have struggled with job loss, foreclosure and the overall uncertainty of the country's economic situation.
But analysts around the country are pointing to some interesting facts to emerge from this holiday season. Holiday spending can be a good indication of other economic factors.
Here in Lake County, holiday crowds and the bustle of seasonal shopping is encouraging local businesses.
“Overall, people are feeling very good about their holiday shopping,” said Lake County Chamber of Commerce Executive Director Melissa Fulton.
Fulton, who did a quick survey of several Lakeport businesses Thursday, said one store she spoke with felt it was keeping pace with last year, which wasn't a strong year for commerce.
“The others all said they were very pleased with the way things are going and the way shoppers have come out, so that's a good thing,” Fulton said.
Based on feedback from chamber members, Fulton said the recession seemed to start later locally. That's a sentiment voiced by some county government officials earlier this year, who also noted the county is likely to come out of the grips of the recession later.
Despite some optimistic signs for businesses, Lake County's economic challenges still appear to be full-fledged. November's unemployment rate rose to 18.7 percent, up from 17.1 percent over October.
Last month, The Conference Board's Consumer Confidence Index showed an increase that brought it to its highest level in five months. The survey is based on a representative sample of 5,000 U.S. households.
“Consumers’ assessment of the current state of the economy and job market, while only slightly better than last month, suggests the economy is still expanding, albeit slowly,” said Lynn Franco, director of The Conference Board Consumer Research Center.
Likewise, last month the Consumer Electronics Association said it found consumer confidence to be the highest since October 2009.
“Consumers are beginning to feel less pessimistic about employment as their overall economic outlook improves,” said Shawn DuBravac, CEA chief economist and director of research. “While the labor market remains depressed, consumer sentiment is rising.”
Reston, Va.-based comScore – which tracks the digital world, including e-commerce – reported Wednesday that $28.36 billion had been spent online in the first 49 days of the holiday shopping season, accounting for a 12-percent increase versus the corresponding days last year.
In addition, the week ending Dec. 19 showed $5.5 billion in spending, 14 percent up from the same week last year, while the final shopping weekend before Christmas hit $900 million in retail e-commerce spending, representing a strong 17-percent growth rate compared to the same time in 2009, comScore reported.
The news about consumer spending comes as foreclosure numbers nationwide appear to be falling, according to the latest RealtyTrac report.
The company's November 2010 report, released earlier this month, showed a 21-percent decrease in foreclosure actions nationwide from October, and a 14-percent decrease since November 2009.
Both the 21 percent month-over-month decrease and 14 percent year-over-year decrease in foreclosure activity were the highest drops recorded since RealtyTrac began publishing the U.S. Foreclosure Report in January 2005.
In the midst of the changing economic factors, around Lake County this year, several charitable efforts – such as wish trees at various businesses and organizations, and food drives – reported overwhelming and quick response from the community to help those in need.
Fulton said that while the local economic optimism isn't yet overwhelming, there is a feeling that people are becoming more comfortable about spending money.
She's also hearing feedback about a strong economic fourth quarter for businesses.
“So let's hope that it keeps up,” she said.
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