BUFFALO, N.Y. — Consumer spending trends from the 2021 holiday season had economists doing a double take.

What You Need To Know

  • According to the U.S. Commerce Department, spending spiked in November and sharply decreased in December

  • Economists said this was due to people shopping early to avoid supply chain issues

  • They said overall spending is up when compared to 2020

Typically shopping spikes in December, but according to the U.S. Commerce Department, that spike came in November, and instead, shopping declined in December by about 1.9%.

“The drop is mainly from a large increase in October and November, and then people getting their shopping done early versus waiting until the last minute,” said Ted Schmidt, a professor of economics at SUNY Buffalo State.

Schmidt said supply chain issues in the fall, caused by COVID-related issues like labor shortages, led to people getting their shopping done early to avoid late deliveries.

Despite the decline in December, Schmidt said overall spending in 2021 increased when compared to 2020, especially in local specialty stores.

“I think it was actually a pretty good year for people, compared historically,” said Schmidt.

He added that things like the child tax credit and student loan forbearance helped people spend more throughout the pandemic.