Holiday Shoppers Less Likely to Spend More in 2013

Your next video will start in

Recommended Videos

  • Info

  • Comments


Dec. 18 (Bloomberg) -- Bloomberg's Julie Hyman and Greg McBride, senior financial analyst at, put the holiday shopping season in focus in "On The Markets" on Bloomberg Television's "In The Loop."

Four in 10 americans plan to spend less.

This on the face of it does not seem surprising given the sentiment we hear about out there.

What sort of driving?

Household budgets are still very tight.

Consumer income is not keeping up.

Even the people who have had a raise, it barely kept up with expenses.

About 40% they they will spend less this year.

Only one in seven say they actually plan to spend more this year.

It goes to show how tight household budgets still are.

Another part of the survey found people feel more financially stable.

Financial security at the highest level since august.

Is it that they feel secure enough to maintain the status quo, but not secure enough to make some bigger news in terms of spending?

They have seen improvement in some areas of finances and financial well-being.

Job security has improved.

We put the dent in the rearview mirror and people feel better about job security and more comp bowl with their debt.

The network is improving.

Ibo are more likely to say higher net worth versus lower net worth than a year ago.

All of that is very positive.

When you look at the paycheck, the paycheck has not increased.

That is really what drives holiday spending.

We have gotten some retail spending numbers already giving us a hand that it will not be so good.

How does this all translate?

How poor are the holiday spending numbers going to be?

Class i do not think they will come in at the read.

It is just that the growth will be meager and modest.

It is in tune with a slow growth economy where consumers do not have a whole lot of extra money to throw around.

This is not new to retailers.

That is why you see these thrown around earlier and earlier.

They know the consumer only has so many dollars to spend.

There is a cop attention to grab the dollars as soon as they could.

There is still not a consumer -- consumers still have a diversion to credit card debt.

We will see the margins from these retailers because they are offering these sales to get people through the door.

Class exactly.

-- exactly.

It is pulling the dollars the consumer has to spend.

I do not think it is pulling more out.

I do not -- they are do not doing additional buying.

They are trying to get the best bang for the buck.

Got you.

Thank you so much for coming in.

We will be on the markets once again in 30 minutes.

"bloomberg west" is next.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change