“Consumers remain quite apprehensive about the short-term outlook and their incomes,” said Lynn Franco, director of the Conference Board Consumer Research Center. “With the holiday season quickly approaching, this is not very encouraging news.”
So the question is… How are you feeling about spending money for Christmas?
Last Christmas there were fewer new “hot” toys and gadgets and this has also trickled down to this year. People are still concerned about employment and also the tightened credit market.
The majority of retailers go into the black during the Christmas season. Since people have less to spend and tighter credit restrictions, this consumer might end up being royalty again.
How will your spending habits differ this year?
If you haven’t been working or have had a salary cut then you are definitely in the low consumer confidence area. Even if you have a steady job and haven’t had a pay cut, this doesn’t mean that this is the time to spend recklessly. Start budgeting now and if you can, start making Christmas gifts.
Consumer confidence had increased, but that was short lived and due to cash for clunkers. As the holidays roll around, people may spend a little more than usual, but they may not spend as much as they did two or three years ago.