Italian Shoppers Close Wallets

Now that the holiday shopping season is mostly behind us — and before the official and semi-official numbers start rolling in on how much consumers spent — the early indications of consumer sentiment are decidedly mixed. In the US, sales are expected to rise 3.8% ahead of last year, down from the 5.2% rise in 2010 over 2009. But at least the direction is positive.In Italy, shoppers presented retailers with the worst Christmas shopping season in a decade. Expectations weren’t high, but even the lowered bar wasn’t in range. One Italian consumer research group forecast sales of €4.8 billion, higher by €400 million than actual sales.

The Italian government’s recently adopted austerity measures will slice more than €1,100 from each of the country’s households this year, pushing consumer spending down as families adjust to the lower income. The result will be an even greater negative impact on the country’s economy. Not exactly what Italy needs right now.