According to CB, 73 million US households have over $1.7 trillion to spend.
Good news for retailers
Unfortunately, the CB also put out a release showing that the leading US index decreased sharply in October (-0.5%), with most indicators contributing negatively—led by large declines in housing permits, initial claims for unemployment insurance (inverted) and the index of consumer expectations.
When consumer economic expectations are down leading into the holiday shopping season, retailers can quickly change decorations from red and green to blue.
In addition, stock prices, real money supply and manufacturers' new orders for consumer goods and materials were the only components that contributed positively to the index in October. After the beating stocks took in November that will most likely change—downward.
