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Alan CME thanks -- Our retail sales -- for the second straight month in May -- this mostly because of the lower gas prices but I think there's other issues looming including Europe and that fiscal cliff.
And that rock -- keep consumers on the sidelines joining us now Michael Mack Mack.
MasterCard advisors spending polls DP.
That is the tongue twister -- names are okay but.
Sure we have gas prices down but she would have thought well with the money I saved on gas I would -- went out and shocked and I didn't.
But what happens it takes a little bit -- time for that money to accumulate and then reenter the retail environment so.
When you see gas prices come down gasoline is an element of the retail sales numbers like that we'll have a temporary negative impact on the overall retail.
The sales figures that come out from the government.
But we didn't see that money go elsewhere -- it because it's still something people sit on the line it's actually the numbers have reached track with spending policy MasterCard show a little bit of the better story than some of the headline numbers -- talking about so.
We have seen some spending in furniture and furnishings have seen the best six months have seen -- and -- held up pretty well.
The high end held up pretty well in -- is as well.
And the other areas discretionary areas that we thought were starting to decelerate.
And -- held water a little bit so.
Gasoline was down building materials down a little bit but the other areas -- -- April was revised lower as well though a lot of people blaming the weather on all this -- you -- agree -- that.
But -- the whether it's been on odd year fine weather standpoint.
You know spring came very very early actually winter never really shut up at all it.
So that might have shifted some 'cause.
Typical June in and may spending into the early part of the in the year in terms of building and -- building materials for example as well as some.
Home improvement spending however again our data showing that some of those numbers in May weren't quite as bad as some the headlines -- come across.
Okay but that being said you have the holiday shopping season landing smack in the middle of this whole fiscal cliff nightmare that we're going to be talking about.
Is that gonna keep people on the sidelines.
Yet that and there are a couple of things to be concerned about here when you're going in the second half of the year the fiscal cliff.
Hold -- conversation right you really want that to be settled before you exit the holiday season.
Public if you have a negative.
Uncertain environment you have consumer confidence lagging during the holiday season I can have a negative echo through -- 2013.
-- from an economic perspective so it's really important I I hope everyone Washington can get that sorted out before the holiday.
-- good luck with that I mean this kind of place a confidence that we're talking matter -- it was McDonald.
We don't think that our country's number one anymore -- -- -- company in output and gifts under the tree area.
Now -- the other thing is that when you look at the confidence numbers from a retail perspective.
What actually ends up happening is yet you tend to see the savings rates are to -- Right now the savings rate is lower than it was a year ago so.
While people might be answering a survey is you know not very confidently.
The savings rate is down habits that might indicate that things are little bit better than some so they're not answering the -- -- actually acting that are beyond ten -- that's an apple and Michael Mack Matt thank you very.
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