9/13/2005

Consumer Spending

As gas prices increase and in wake of the destruction of hurricane Katrina many experts have predicted consumer spending to be down for the upcoming holiday season. http://www.msnbc.msn.com/id/3683270/ . In turn the merchandise may increase somewhat to cover the shipping cost, which has increased to cover the gas increase. Even though nothing is for sure of what the post-hurricane Katrina status will be like it's likely to say this holiday season we will either have to spend more or buy less materials.

6 comments:

Alex said...

My guess is that Consumer Spending is going to have to go down. Who can afford Christmas presents when we have to take out a loan just to buy gas? Although it is nice to finally see gas prices starting to fall!

Bree said...

That's a given. Of course consumer spending is going to go down, it already has. Because gas prices are so high and sorry but due to the disaster in the U.S. Gulf, where the oil refining is concentrated, I don't see them going down so household spending is going to be very low. I think this is definitely going to effect the economy more than anticipated.

taylor said...

Consumer spending has already gone down. I hear people in all of my classes saying they can't afford this or that because of gas prices. I also think that this disaster will definitely effect the economy more than we ever thought that it would.

Dr. Tufte said...

-1 on Mia's post for a poorly formatted link.

Buying gas is a form of consumer spending, so I have trouble seeing how it can go down.

What will go down is things like department store sales and profits.

carter said...

Dr. Tufte made a point that I agree with many people gave extra money to the victims in stead of buying luxury goods. Which made spending go down.

Dr. Tufte said...

-1 on Carter for a spelling error.