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EconoMeter: Will holiday consumers spend more?


Sunday, November 13, 2011

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Kelly Cunningham, National University System

Answer: Yes

The key word is “relatively” better to describe San Diego consumer’s slightly improved buying mode this year. The local economy has gradually risen over the past year, with some jobs added, and the unemployment rate has somewhat reduced. Pent-up demand for new goods has risen following several years of reduced and postponed spending. Fuel, energy and other commodity prices are higher than a year ago and will crowd out some spending that would otherwise occur, so consumers will undoubtedly be searching for perceived bargains. Significant deals on new electronic gadgets in particular should entice consumers to spend more this year.