US consumer confidence has surged to its highest level since summer, providing a positive outlook for businesses as the crucial holiday shopping season reaches its peak.
According to the Conference Board, a prominent business research group, the consumer confidence index increased for the second consecutive month, reaching 110.7 in December, up from November’s 101. This exceeded analysts’ predictions of 104.5 and marked the most robust reading since July.
Americans’ concerns about a potential recession in the next 12 months have reached the lowest point this year. The index, which gauges both the current economic conditions and the outlook for the next six months, reflects a growing sense of optimism among consumers as they head into the year-end festivities.
Consumer spending accounts for about 70% of U.S. economic activity, so economists pay close attention to consumer behavior as they take measures of the broader economy. The survey also showed modest increases in consumers’ intent to purchase homes, autos, appliances and spend on vacations. A Deloitte survey this year said Americans had planned to spend an average of $1,652 this holiday season, surpassing pre-pandemic figures for the first time. In contrast, this is not the case for billionaires. Pandemic or no pandemic, they spend big.
Big Boys/Girls Toys
In the days leading up to Christmas last year, Nicole Pollard Bayme, founder of the luxury styling firm Lalaluxe, received a client’s call that would epitomise the opulence of holiday gifting. According to a Business Insider report, the request was for a rare Hermès bag adorned with diamond hardware, an exclusive creation by the wealthy and for the wealthy.
Its total cost? A staggering $750,000. And how much is that in Indian Rupees? Don’t even try. Bayme, based in Los Angeles, seamlessly navigated her international network of Birkin dealers to source the coveted item. Bayme, whose styling services commence at $600 per hour plus a percentage of the purchase, remarked, “For the person that has everything, why not have diamonds on your handbag too?”
Holiday gifting for billionaires transcends the realm of wishlists and the uber-rich desire the best of the best without budgetary constraints. Brands like Chanel, Rolex, and Hermès, especially the collectible Birkin, top the holiday wishlists of the super-wealthy, the Business Insider report said citing Winston Chesterfield, founder of London consulting firm Barton.
Beyond material possessions, personalised gifts hold significant appeal. Thoughtful and super-expensive gifts, regardless of size, can make a lasting impression. For billionaires, the trend veers towards experiences over material possessions. The Covid-19 pandemic has intensified the shift towards experiential gifting, with private island rentals, wellness breaks, and even space travel experiences gaining traction among the ultra-rich.
(With agency inputs)
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