It’s the shutdown that stole Christmas.
More than a week after the debt-ceiling standoff ended, fresh evidence is piling up that the 16-day government shutdown left an indelible mark on American consumers, replacing holiday cheer with economic fear.
Americans are scared of losing their jobs and worried about the overall state of the economy, according to several new surveys.
Moody’s Analytics expects revenue growth to be weaker in 2013 than in any of the last three holiday seasons. Economists say spiking consumer anxiety underscores the painful reality of widespread joblessness and stagnant incomes.
“The biggest factor is the lack of wage-income growth, which is obviously related to weakness in the labor market and a high unemployment rate,” said Scott Hoyt, senior director of consumer economics at Moody’s Analytics.
Retailers generate as much as 40 percent of their annual sales during the holiday season, which traditionally begins the Friday after Thanksgiving.
But this year, retailers are so desperate that many — including New York icon Macy’s and Wisconsin-based Kohl’s — are opening on Turkey Day instead. Many stores will start the holiday season already reeling from a weak back-to-school season.
Jim DeNatale of DeNatale Jewelers on Broadway in the Financial District says business softened six weeks ago, and revenues are now down roughly 15 percent.
He doesn’t expect a revenue uptick this holiday season, and he will be manning the sales floor himself rather than hiring seasonal workers.
His Wall Street clientele has been giving DeNatale an earful about the shutdown mess.
“I hear a lot about problems with the government and the economy,” said DeNatale. “They all seem to be very upset with the way things have been handled.”
DeNatale’s informal survey is backed up by wider research.
Gallup’s latest economic confidence poll showed that 69 percent of Americans believe the economy is worsening, while Bloomberg’s Consumer Comfort Index hit its lowest level since February.
Last week, Bankrate.com reported that nearly three quarters of Americans are reining in spending. In addition, feelings of job security plunged to a two-year low this month, after serving as a rare bright spot for most of 2013.
“We chalk that up to the shutdown and brinkmanship over the debt ceiling making people very nervous about the economic fallout,” said Bankrate.com Senior Financial Analyst Greg McBride.