Morning Business Report: Gift cards, subscriptions drive last-minute holiday spending as markets hit record highs
Gift cards remain one of the most popular last-minute holiday gifts, with spending expected to reach 29 billion dollars this year.
(LILAMAX)- Gift cards remain one of the most popular last-minute holiday gifts, with spending expected to reach 29 billion dollars this year.
Subscription services are also seeing strong interest. From digital experiences to meal kit deliveries scheduled for January, experts say non-shipping gifts are fast, thoughtful and arrive instantly in inboxes — making them an attractive option for procrastinating shoppers.
The surge in consumer spending comes as new data shows the U.S. economy grew at a much faster-than-expected pace in the third quarter.
Strong consumer spending led the growth, along with increases in exports and government spending. A smaller-than-expected decline in private fixed investment also helped boost the overall economic picture.
That optimism pushed stocks higher Tuesday, with the S&P 500 closing at a new record.
The U.S. stock market will close early today at 1 p.m. and remain closed all day tomorrow for Christmas.
Meanwhile, the Trump administration says it will begin garnishing wages from student loan borrowers in default starting in early January.
The Department of Education reports more than five million borrowers are currently in default, a number that could rise to nearly ten million in the coming months. This marks the first time wage garnishment will resume since the start of the COVID-19 pandemic, when collection activity was paused.
In a lighter note, a new survey suggests Monday, December 15, was considered the last truly productive workday of the year for many Americans.
The Talker Research survey of more than 1,100 employed adults found workplace productivity drops sharply as the holidays approach. The most commonly cited cutoff date was December 24, with 11 percent of workers saying work should only ease up starting on Christmas Eve.