NRF Economist Worries ‘Geopolitical Fears’ of Terrorism Could Hurt Consumer Confidence

In wake of the Paris and San Bernardino, California, terrorist attacks, Jack Kleinhenz, chief economist at the National Retail Federation, worries about the “geopolitical fears” of terrorism and the impact those fears might have on consumer confidence heading into 2016, he said on a Monday webinar that NRF sponsored jointly with the Consumer Technology Association. “My concern is whether those fears get more intense and translate into a bit of a holdup” in how consumers “see the future,” Kleinhenz said. “I believe consumers are going to spend based on their confidence,” he said. “Consumer confidence numbers are important. They’re a little bit fickle at times.” News coverage about the Paris and San Bernardino attacks “clearly leaves consumers unsettled and upset,” CTA Chief Economist Shawn DuBravac said. “But I don’t know if consumers broadly view all of these terrorist attacks in a connected way, such that it changes their overall perception of the trajectory of the economy, as it relates to their own financial well-being,” he said.