ARVADA - Jake's Toy Box in Arvada is busy stocking toys on the shelves in preparation for the holiday shopping season.
The family-owned toy store has the certainty of knowing the holiday season is coming, but like many merchants, they are facing the uncertainty of not knowing how much shoppers are going to be willing to spend this year.
While Congress reached an agreement to reopen the federal government and avoid a default, it is only a temporary solution.
"The government is funded until January 15, and the debt limit will not have a problem until February. So it will be déjà vu all over again," economist Jack Strauss said. "Businesses want certainty and the government has shown that it can't give that certainty."
The cloud of uncertainty created by another potential government shutdown and default is likely to cast doubt for consumers.
"Consumer confidence will probably remain low. In August, it hit a 31 year low and because of fiscal uncertainty. It is unlikely to rebound. This implies relatively slow consumer spending over the holiday season," Strauss said.
In anticipation of the changing consumer landscape businesses have been altering their sales strategies for the coming holiday shopping season.
"We've seen our customers kind of scaling back, being a little bit more reserved in their spending," Jake's Toy Box co-owner Dan Driver said. "We're trying to find more quality items in the $25 and under range."
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