Holiday shopping spirit diminished by poor weather, national tragedy and economic concerns kept many purse strings closed this holiday season, according to MasterCard Advisors SpendingPulse. The report, which tracks spending on holiday merchandise, found spending in the two months prior to Christmas increased only .7 percent over 2011—significantly less than the 3 to 4-percent increase analysts had predicted. By comparison, in 2011 sales grew 2 percent from the year before—despite higher unemployment the time.

“You are looking at modest to marginal growth from a year ago,” Michael McNamara, a SpendingPulse vice president, said in a telephone interview with Bloomberg. “Weather events and the fiscal debate both anchored the season in terms of growth. The media coverage, which did a good job of explaining the negative consequences of the fiscal cliff, created this negative trend in consumer confidence and spending.”

In fact, retail sales saw their weakest growth since the 2008 holiday season when the US was in the midst of recession. Holiday shoppers this year were distracted by Superstorm Sandy in the Mid-Atlantic and Northeast, diminished consumer confidence as the US teeters on the edge of an unresolved fiscal cliff, and the shooting massacre at Sandy Hook Elementary in Newtown, Conn. Dec. 14.

“The Newtown massacre, psychologically I think, spread through the country,” New York retail consultant Robin Lewis told Bloomberg. “This event was not isolated in the Northeast. It slammed the consumer with a lot of sobriety and made us think about what is happening in this world we live in, particularly around the holidays, when things are supposed to be wonderful and peaceful.”

[Image via ValeStock/Shutterstock]

Samantha Lile

Samantha Lile is a 2002 Missouri State University graduate of journalism and mass media. She has served as a reporter and editor for various newspapers throughout her journalism career. She made the leap into writing full-time after working for a major financial institution since 2000.

Because of her banking background, Samantha is knowledgeable in finance reporting, but is also strong in commentaries, personal profiles, youth studies, horticulture, history and entertainment-related works.

Samantha lives in Ozark, Mo. with her husband of nine years, four dogs and two cats.

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