Significant Increase in Christmas Purchases in the U.S.

The National Retail Federation of the United States reports that American citizens spent 5.5% more on Christmas shopping in November and December 2017 compared to the previous year. The reasons for this increase, according to the report, include rising wages, a decrease in the unemployment rate, and tax cuts. Last week, the U.S. Department of Labor reported that the unemployment rate fell to 4.1% in the last month of the previous year, the lowest level in 18 years. Over the past year, wages in the U.S. increased by 2.5%, reaching an average of $26.63 (approximately 120,000 tomans) per hour in December. The National Retail Federation states that citizens spent a total of $691.9 billion in November and December for their end-of-year purchases, the highest amount since 2005. This figure does not include American spending in restaurants, gas stations, and car markets. According to the report, an increase in consumer confidence regarding their economic situation and incomes has led citizens to spend more than expected on year-end purchases. Previously, the same organization had predicted that consumer spending for the holiday season would increase by 3.6% to 4%. The report also notes that about 20% of year-end purchases were made online or through other means rather than in stores, showing an 11.5% increase compared to the previous year. According to official statistics, the inflation rate in the U.S. is slightly above 2%. In this context, Reuters reported that the retail companies index on the Dow Jones stock market increased by 1.5% last Friday. The report mentions the reduction of corporate tax rates from 35% to 21% in December of the previous year, stating that many large American companies increased payments to their employees as a result. The tax cut bill was introduced by the Donald Trump administration and was implemented after being approved by American lawmakers. Donald Trump, the President of the United States, promised during his election campaign to create millions of new jobs for Americans, particularly through reducing imports and increasing exports. After winning the election, he repeatedly urged American companies operating abroad, especially in China, to return to the U.S. and focus on production within the country. According to the Associated Press, large American companies currently have $2.6 trillion in cash accumulated outside the borders of the U.S., which could provide a $7,000 check to every American citizen.