retail news in context, analysis with attitude

CNBC reports on a National Retail Federation (NRF) survey saying that “more Americans are planning to splurge a little if they receive a tax refund this year.

About 13.2 percent of Americans said they will spend their refund on a big ticket item such as a television set or furniture, up from 12.5 percent last year. About 11.9 percent are earmarking the money for a vacation, compared with 10.0 percent last year who eyed a trip.”

And almost a third of Americans say they will spend their refunds on “everyday items.”

So the good news for those looking for signs of an economic recovery is that a sizable percentage of people’s tax refunds will get put back into the economy.

Not everybody will do so, however - the study also says that about four out of ten people will put their refunds into savings...slightly more than last year.
KC's View:
It is the great irony. For years, economists have said that Americans don’t save enough. Now that they are saving more, people worry that they are saving too much, and wish that they’d stimulate the economy a bit.