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Holiday shopping season could take a hit from gov't shutdown

October 4, 2013

This year's holiday shopping season was projected to produce a 3.9-percent rise in consumer spending, but that forecast could be dampened by the ongoing government shutdown, according to MarketWatch.

The National Retail Federation said that a prolonged shutdown could make shoppers lose confidence in the economy

"Our forecast is a realistic look at where we are right now in this economy — balancing continued uncertainty in Washington and an economy that has been teetering on incremental growth for years," NRF President and CEO Matthew Shay said. "Overall, retailers are optimistic for the 2013 holiday season, hoping political debates over government spending and the debt ceiling do not erase any economic progress we've already made."

Shay said better forecasts now hinge on Congress.

"[O]ver the next 45 days, without action, we face the potential of losing the faith Americans have in their leaders, and the pursuant decrease in consumer confidence," he said.

Read more about consumer behavior.