Page 13 - The Peorian Vol 3 Issue 1 Winter

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“The improving family financ-
es shows continuing economic
recovery. People also are feel-
ing they are better off now than
before because they have more
money in their pockets,” Goitein
said.
“But people are also looking at
the future and there are increas-
ing worries about that future,
which mirrors the national
surveys. More this time said they
are expecting a decline in future
family finances. That, naturally,
has affected overall optimism,”
he added.
When people worry about the
economy, Goitein said, they also
worry about interest rates and the
Bradley survey showed that to be
true. More people believe inter-
est rates are bound to increase,
which would cause them to
curtail credit card use.
“I would have to say when
there is an expectation of a more
cautious consumer then spend-
ing won’t be up very much. That
could change, of course. If the
consumer gets increased signals
that Congress won’t allow a
government shutdown again that
is reassuring and confidence will
improve,” he said.
Improved confidence “likely
would mean more willingness
to spend, to take money from
savings to buy gifts or to go more
into debt, such as credit card
debt. But if there is an unwill-
ingness to spend and take those
chances, the increased income
will likely be put back into sav-
ings. Discretionary spending is,
of course, what is affected the
most by consumer sentiments,”
Goitein said.
One area where the National
Retail Federation expects major
change, regardless of consumer
confidence, is in the number
of people who will shop elec-
tronically. Based on a survey by
shop.org, online sales growth is
expected to grow 13 percent to 15
percent, to as much as $82 billion,
over last year.
Continued on page 14
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