December 17, 2014
Many small retailers and small food business owners rely on a strong holiday season to help smooth out the financial ups and downs that come throughout the year. So a cheer went up amongst small businesses as gas prices in the US lowered with the thinking being that with Americans spending less to gas up their cars, that money would translate into more being spent on holiday gifts. But is that actually the case?
Based on a poll by CNBC, it turns out that lower gas prices are predicted to only have a minimal impact on holiday spending. Their research shows that only 8% of Americans said that they’re now willing to spend more thanks to the decrease in gas prices. More often than not, any increase in holiday spending this year is credited to higher incomes and more disposable income this year than in years past. Instead of spending on gifts, consumers say they’re more likely to sock the extra money away into savings or put it towards paying off debt.