Though it was one of the few industries to maintain growth during the recession that began five years ago, the tech sector was not immune to the effects of reduced consumer spending. The U.S. economy is now beginning to slowly crawl back, though, and more consumers are now preparing to spend their money – especially on gadgets.
The Consumer Electronics Association (CEA) this week released a new report showing that consumers confidence in tech spending in October reached the highest level since those seen in 2007. The industry group’s index that measures consumer sentiment toward tech spending hit 90.2 for the month of October – a full 9.5-point jump from the previous month.
CEA estimates that sales during November and December of 2013 will rise 4% over those same months in 2012. Total holiday spending revenue in 2013 is expected to reach $738 billion.
“Consumer interest in tech has moved up decidedly heading into the holiday season,” said Shawn DuBravac, CEA’s chief economist and senior director of research. “Exciting product announcements coupled with early retailer promotions and advertisments are likely behind the jump in sentiment toward tech spending this month.”
CEA believes that the overall improving economy could be a big factor in the consumer confidence boost. The group’s measurement of overall consumer sentiment toward the economy also jumped two points in October. Another factor, according to CEA, could be the recent end to the government shutdown and the raised debt ceiling.