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While I think a lot of the people out on the roads today are making those returns of the gifts they don't want and retailers are hoping.
That won't happen they want to turn the tables they've had a lack luster holiday shopping season.
According to a new report retail sales in the last two months of this year.
Before Christmas increase by less than 1% over the previous year and that is the weakest result.
Since 2008 -- what happened in 2008.
What does this mean for the overall economy joining me now senior economics writer for the Wall Street Journal Steve Moore Steve thanks for -- it -- today.
Hi -- yeah we're white Christmas here in Chicago -- -- I don't know Chicago.
-- you know -- those months of November and December -- shall we crucial.
Jamie for that retailers about forty to 50% of all their business all -- is done in the hours.
Two holiday months and so it's it's.
You know not very good news that that retail numbers came -- You column lackluster and that's probably putting it charitably this was thought.
Worst year since 2008 and it's actually surprising Jamie because if you look at some of the other indicators consumer confidence actually had bumped up a little bit in the last couple of months we have I wouldn't read too much into this because other indicators economists.
Are looking up right now.
So do you think it's an anomaly.
That it isn't going up visited.
Indication that if we go over the fiscal cliff there's concern from people that we will go into another recession.
And they're -- and on to their money.
Yeah I think you're exactly right I think -- a couple factors here one is the fiscal cliff that people just hang on their wallets and hang on their money as you just sad I don't forget we have got.
The terrible shooting in Connecticut the weekend before the biggest shopping weekend of the year I think there's no question that her retailers a lot.
You know the questions whether this is just a little left but that I mentioned some of these other areas the economy that are looking up gas prices are -- out Jamie you've got.
The energy sectors -- -- very well housing is picking up so we're getting kind of mixed signals on the economy right now but there's no question.
The economy wants a solution to this fiscal -- issue they wanna get it behind us and as you know Jamie we've only got what a week ago.
Right it'll be itching to see the percentage of returns.
Four that -- retailer's -- they can get hit pretty hard people saying I'll take the cash instead -- how important is consumer spending.
To the overall health keenness of the economy.
Well sure it's a -- it's a big a factor I mean look.
That there's two major sectors of the economy with your money you can -- consumer and that's important or you can and that's that that's important to.
But went -- consumers hold back there's no question that the retail sector of the economy gets hit hard -- -- to a slowdown and it just business activity.
By some estimates about two thirds of our economy and Jamie are the retail sector where people go out and spend money as consumer.
So the numbers can't take quick as -- just out of curiosity since you follow this stuff and you know mining did you buy less this year than used to.
You know -- I got you -- too much credit cut from felt first that it -- and that's about.
But you know we did pretty well -- -- got a pretty good stats this year I got golf clubs you know I.
I felt like I'd like I did pretty well I don't know about you know.
No I'm being very conservative to be honest with -- kept asking if we go over the cliff it's gonna sting everybody so why a lot of it -- you can't solve.
Thanks Steve note aviation just through 2000 dollars a year it could take out of.
Middle class families if we go back up to your right they sound you sound like everybody's going to feel it thanks Steve will bring you back in a week to see what actually happened and good to see you thank you -- happy holidays that.
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