In 2016 Valentine’s Day was estimated to add $19.7 billion to the economy. According to Kimberly Amadeo, US economy expert, people were going to spend much more than last year’s record of $18.9 billion.
Consumer spending contributes to 70 percent of economic growth, as measured by Gross Domestic Product (GDP). The spike in purchasing helps the economy in a year where business spending has been on the downswing. Because the strong dollar has hurt exporters, higher consumer spending helps to keep the economy on track.
Statistics show that men spend nearly twice as much as women on Valentine’s Day: $196.39 per man vs. $99.87 per woman, partly because men are usually higher earners. Younger people are more likely to celebrate than older people. The top five Valentine’s Day purchases are candy, greeting cards, an evening out, flowers and jewelry.
Maybe we need more holidays to keep the economy healthy.
Written by Brett Poirier, a Research Assistant at RSG