MINNEAPOLIS — From November all the way until Christmas Eve, consumer spending was up more than 3% from last year.
It was a big relief on the retail side of things, especially after we said we wouldn't do it again — but the thing is: We do it every year, no matter what we say.
We over spend in November and December, and then spend more in January and February in an effort to pay off our debts.
So, why did we get on the yuletide, charge-the-card train? Because many people, more than ever really, are working and have a steady paycheck.
"I mean, look: The unemployment rate has been below 4%; the economy is growing; there are savings... and so I just think people felt fairly decent," said Chris Farrell, senior economist at Minnesota Public Radio. "They may not feel good about the overall country or the overall economy when you ask them those questions, but their particular circumstances, they are OK."
Farrell said that mindset sometimes leads to a little more wiggle room when it comes to holiday spending.
"'...I know I said $100; I can go a little above that,'" he said.
And going a little above does sometimes mean a lot of us trim down on spending in the early months of the new year. That's precisely why thousands of emails from retailers go out the day after Christmas, pushing those familiar "year-ender sales" in an effort to clear inventory brought on for the holiday season.
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