Consumer spending slow road to recover

ALBUQUERQUE (KRQE) - Although gas prices across the country are slowly going down, financial experts say consumers are still not sure it will stay that way.  That's one reason many are apprehensive about resuming their spending habits once again.

One key thing that will need to happen is if the gas prices go down, they need to stay down. If people are worried about gas shooting up to four bucks a gallon, they're not going to go out to eat as much or go on vacation.

Here in Albuquerque, gas prices are down about 10 cents in the last month which averages out to roughly $3.66 a gallon for regular unleaded.

Economists say two other things will also have to happen for us to feel confident to spend. One is that the job market will also have to stabilize and the unemployment rate has to go down. Workers need confidence that if they find a job, it won't be one that they won't soon be laid off. The price of homes will also have to go up. If people think they have equity in their home, they will feel like they have more money and will increase their spending.

There is some good news in that all of these things including gas prices, home prices and unemployment are better an they were two years.  That could mean the return to spending may jump as we head into the summer months.

Just in time for the upcoming holiday weekend, gas prices in New Mexico are about in the middle for the country. You will, however, pay more as you go west and less as you go east.