Halloween’s Influence on the Economy
When we think of Halloween, the things come into our minds are trick-or-treating, costume parties, and a whole lot of candy. We all know Halloween takes place on October 31 every year but here’s something you might not know. Major spending holidays like Halloween, Christmas, and Thanksgiving have short-term benefits for the economy of a country. It is because these festivals encourage people to do extra purchases that might not otherwise occur. And that influence is not one-sided. Just like Halloween affects the country’s economy, similarly, the state of the economy affects the Halloween.
Stating the obvious but in a down economy, people would not prefer to spend on non-serious goods such as candies, costumes, pumpkins, and home decorations. Conversely, booming economic times could serve as a blessing to Halloween expenditures.
One way or another! The Halloween or other major spending holidays do have a correlation with the economy. Plus, according to many economists, the increase in spending has a positive effect. It is because when people spend more the gross domestic product (GDP) of the country also increase in value. The GDP is the most crucial economic indicator which used to gauge to check the country’s economic health. It represents the total market value of all goods and services produced within a period of time.
In fact many stock market and other financial markets investors use to see the growth rate as an asset allocation decision.
It is possible since consumers start saving during the preceding months which result in reduced gross spending during August and September. It is to save and spend more on Halloween. If we take a look at the stats, Halloween retail spending was $9.1 billion in the year 2017 and the number of people celebrating was 179 million. Means, each consumer spent $86.13 each which by the way is another record.
|Year||American Celebrating||Average Spending Per Buyer||Total Spending|
|2017||179 million (Record)||$86.13||$9.1 billion* (Record)|
|2016||171 million||$82.93||$8.4 billion|
|2015||157 million||$74.34||$6.9 billion|
|2014||162 million||$77.52||$7.4 billion|
|2013||158 million||$75.03||$6.9 billion|
|2012||170 million||$79.82||$8.0 billion|
What Do They Buy?
According to the National Retail Federation’s Annual Survey, in 2017, 70.6 percent of Americans spent around $25 each on bags of Halloween candy. Halloween Décor was reasonable and around $30 per person was estimated.
However, the most costly thing to buy at Halloween is the costumes which men spent around $96 each, compared to $77 each for women, in the year 2017. And the half of Americans bought them.
The top costumes for adults were a witch, a Batman character, a Marvel Superhero, a vampire, and an animal. In the Children category, there was a superhero; Batman character or princess, which were tied for the same spot; animal; Spiderman; and a Star Wars character.
16 percent of consumers were dressed like pets. And the most popular costumes in this category were pumpkin, hot dog, bumble bee, and the devil.
Influence on Economy
Halloween is the time when about 20 percent of retail sales occur for the entire year. In fact, 40 percent of the consumers start shopping long before Halloween.
According to data, the retail industry produces 5.9 percent of U.S. GDP. So, when it’s up, so is wholesaling, which produces also 5.9 percent of GDP. On the other hand, the retail sales are a reliable indicator of consumer demand and that’s what drives the U.S. economy. This indicates that record-setting retail sales are a critical component and do influence the country’s economy.