We haven't yet seen the negative effect of gas prices on consumer spending. It's certainly not here in these numbers. That doesn't mean it's not there. Certainly the weekly retail sales numbers have been sluggish. |
We're going to see people trimming their expenses here and there. They probably will not eat out as much or go to movies as often as they normally would. So restaurants and theaters are also vulnerable. |
When it's as low as it was, it takes time to start turning it around. Today's report doesn't mean there's a boom, but it certainly is encouraging. |
When you take a look at what's happened in the last month, you see the same kind of pace?right on down the line. It shows a nice, steady moderate pace, which is what you want. |
You do have a defensive consumer. If the consumer is very nervous and uncertain about what is going to be happening, you don't know how they're going to react. |
You don't want people to be cautious if you want them to buy. You want them relaxed and saying their troubles are behind them. This (employment) report doesn't suggest that. |
You want the consumer buoyant. Most consumers are not current-events oriented. When you get everybody involved in current events, when they usually are not, then people are not going to go out and buy things just for pleasure of it. |