Danger Park City Main Street…Danger
Reuters is reporting that the 2015 holiday season could be the weakest since the recession started in 2009:
U.S. consumer sentiment hit its lowest in a year in early September as households expected slower growth abroad to hit the U.S. economy, a survey released by the University of Michigan showed. Consumers’ expectations for current and future personal finances also took a knock. Even though unemployment levels are decreasing and gas prices are falling, stagnant wage growth is forcing middle- and low-income consumers to spend prudently, Paransky said.
Dollars saved at the pump are being directed to personal savings or on non-retail activities, such as holidays, instead of discretionary items.
Higher income consumers are also expected to rein in spending after seeing their stock portfolios oscillate, due to the turmoil in the global stock markets following the devaluation of the Chinese yuan and the Federal Reserve’s decision to hold off raising interest rates.
The truth is that you never know. A healthy dose of El Nino snow could change everything, but as of right now, the default forecast doesn’t look good for the holidays.
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