E-commerce sales continue to grow!

By Tom Stundza

Internet sales increased by 4.5% to $27.5 billion during the third quarter, a rate that is slightly higher than the downwardly-revised 4.4% growth experienced in the second quarter of the year. This latest report suggests that consumers remain resilient in their e-commerce spending habits, despite elevated energy prices and debt burdens. The drivers for consumer spending are turning more negative, though, says economist Austin Litvak at Moody’s Economy.com. “Though energy prices have retrenched significantly over the past several months and labor market growth has remained surprisingly resilient, record debt burdens are weighing heavily on growth potential,” he says. “However, this report suggests that e-commerce sales continue to perform above average, despite this considerable headwind.” So, in the near term, growth in e-commerce sales should persist, he suggests, although there still are risks that could keep a lid on sales. These risks are higher wintertime energy prices and increased consumer debt burdens. Still, growing internet accessibility will be one of the main catalysts underpinning future e-commerce growth, Litvak adds.