Cheaper gas, more jobs and less consumer debt should help shoppers – and merchants – this Christmas season. Breakingviews columnists discuss the possibilities.
It's a big day for US retail attic could be a banner year the whole bunch of reasons why. US consumers and European consumers could be shopping till they drop. Rob you've got all the good news for us what's what's happening are real excited to love it it's shaping up to be good years in. Then made it pastors and one of the primary reasons is just falling price of gas from gas prices are down quite a bit for. They've fallen about fifty cents on average. Compared to last year that's about an extra seventy billion dollars in consumer pockets table are better to spend it then on and then that's the way it is and at Wal-Mart also you took the think about some how people spend money in gas it's the lower middle income people spend a greater chunk of their paycheck on gas so that means these people have a lot more money proportionally to spend you know an over the past few years they've spent less than average on consumer goods this gives a chance to make up for quite to that I mean we have no Thanksgiving in Europe. Apparently Black Friday as nevertheless coming growing whatever is about what what what is the view of the consumer. And here same kind of thing well it's it's certainly attendance thought its takeoff and European retailers votes to curry is you know this man. Thanksgiving to proceed but I thought I guess what's different is that the US that recovery feels a bit more phones you're still sort of in a difficult position. This question about whether we slip back and deflation so a provisional. Gonna see the same kind of robustness of consumer spending is missing and yes America. Not some other reasons I mean gas is obviously a big one but there's a lot of reasons why it's on the extra employment and confidence in jobs it's not only that people are finding jobs that people have jobs or need and are more confident they're gonna. Stick around the next year right and I means you can you can spend a little more heat on and you know what might be frivolous or kind of unnecessary purchases like what if you could. Chris Richard victims. So that that's also going to be a big advantage for. Spending right. And from what about a am in Europe overseeing some any of the somewhere I mean obviously the job situation is. But little Merck here along with the broader economic question for we'd have seen some more money being pumped into the system as well so I don't know if that finds its way into. The Christmas season or not what's what's your perspective there Seacrest. I mean that the cost of money is still very low in the air holes and maybe that helps you know you can you can or is very very chickens and maybe continues Taylor move it. And more able to fix themselves. Right there leveraging also. People's pay down a lot of debt over the past few years that that case is starting to moderate to paying down a bit less that means the punishment in the worst golf cart will keep an honorable have all the the tallies and soon enough. A will be back with more breaking the suit.