Tucker Hart Adams, Regional economist with US Bank

What?s your sense of local consumer sentiment heading into the holiday season?

Consumers are worried, cautious and likely to spend frugally. I hear a lot of anger from people who are only working part time when they need a full-time job, are working in jobs that are far below what they are qualified to do, or just plain can't find work. Although there are some help-wanted signs at retail stores, it's hard to find a high-paying job these days if you aren't in health care, government or work on a gas-drilling rig.

How much are higher gas and food prices or declines in the stock and housing markets weighing on consumers?

Consumers have saved very little out of income in recent years. Rising gasoline prices, soaring food costs and higher credit card and mortgage payments are cutting into discretionary spending. In the short run, most of us don't have an option for getting to work other than getting into our car and driving. So, we cut back somewhere else to pay the higher fuel bill. For a while, we could take equity out of homes to finance spending, but falling home prices and tighter credit standards have almost eliminated that option.

Do you expect any income segment to be more affected than others by current economic conditions?

The construction industry is being hit very hard by the housing slump, and manufacturing and financial services also are shedding jobs. This spills over into all of the places these workers normally spend money - retailers, restaurants and bars, entertainment. Fewer homes means less business for furniture and carpet stores and landscaping services. There is no need for new shopping malls, so commercial construction also is affected. The ripples spread through the economy.

How much do holiday sales matter to Colorado's economy?

In 2006, November and December accounted for 20 percent of Colorado's retail sales and 18 percent of sales tax receipts. The holiday season provides a third or more of retail profits and temporary jobs for college students and others who need a bit of extra income. If sales are flat this year, pocketbooks will suffer, and state and local governments will have fewer resources available to help those in need.

Do you expect to spend more or less this holiday season?

This holiday season, all of my far-flung family is coming home for a visit to celebrate our 50th wedding anniversary and my 70th birthday. So, my holiday budget is going to the airlines and the grocery store. We won't be spending much at the mall.

Gary Horvath, Managing director for the Leeds School of Business at the University of Colorado

What?s your sense of local consumer sentiment heading into the holiday season?

In late September, the National Retail Federation released its forecast for the 2007 holiday season predicting that holiday sales (November and December) will be 4 percent higher, totaling $475 billion this year. This is below the 10-year average of 4.8 percent. If the forecast holds true, it will be the slowest holiday since 2002, when sales rose 1.3 percent. Turning to Colorado, there are a number of factors that point to solid retail spending during the coming weeks. For the past three-plus years, Colorado's economy has outperformed the national economy, particularly in terms of population, employment and wage growth.

How much are higher gas and food prices or declines in the stock and housing markets weighing on consumers?

I think consumers are getting tired of hearing about the subprime fiasco and the way some of the country's largest financial institutions got too greedy and mismanaged their risk. Most likely, consumers are tired of sticker shock every time they fill up or stop by their local grocery store. I am tired of hearing about foreclosures and feel bad for the folks who didn't fully understand the ramifications of loans they had taken out. Most likely, the vast majority of people are not planning to move, in which case low rates of appreciation or slight depreciation is not an issue.

Do you expect any income segment to be more affected than others by current economic conditions?

It is my understanding that per capita income is growing faster than average household income. If this is the case, it would suggest that larger increases are occurring for those in higher wage brackets. I have looked at data that show that wages for those in the state's metro areas are growing faster than those in rural areas. There appear to be areas of disparity in the distribution of wealth within the state.

How much do holiday sales matter to Colorado's economy?

Holiday sales are extremely important to the Colorado economy for several reasons:

* Overall, about 18 to 20 percent of total retail trade sales occur in November and December.

* Overall, about 25 percent of total retail trade sales for shopping center-inclined businesses occur in November or December.

* It is not uncommon for cities to generate 60 percent of their revenue from taxes associated with retail sales.

Do you expect to spend more or less this holiday season?

Fortunately, we are in a different financial position this year and may have the ability to spend more. Hopefully, a greater portion of that will be dedicated to charitable offerings, and hopefully we can participate in more seasonal activities. I expect our spending to definitely keep up with inflation. It will be difficult to analyze the holiday sales for 2007 and 2006 because of the severe storms that hit last December.

Scott Anderson, Senior economist at Wells Fargo & Co.

What?s your sense of local consumer sentiment heading into the holiday season?

My sense is that consumer sentiment heading into the holidays is atrocious - the lowest it's been since 2005, when the economy was rocked by the Gulf Coast hurricanes. The list of obstacles for the consumer is long and daunting: falling home prices, a struggling stock market, a softening labor market, rising food and energy prices, resetting mortgage rates and high debt levels. There is a strong possibility that consumers will not survive this financial tsunami.

How much are higher gas and food prices or declines in the stock and housing markets weighing on consumers?

The answer is that both are weighing on growth right now. I have run some scenarios on the potential impact on consumer spending in 2008 from another 10 percent decline in home and stock prices. The result is that consumer spending that has been trending at around 3 percent growth over the past year could slip to between 0.6 percent and 2.2 percent growth . . . Resetting mortgage rates and high oil prices could do even more damage to the consumer's ability to spend.

Do you expect any income segment to be more affected than others by current economic conditions?

The stress from high debt levels and resetting mortgage rates is clearly concentrated among lower-income households, but now even higher-income households have begun to scale back spending as equity prices have tumbled over the past month.

How much do holiday sales matter to Colorado's economy?

Holiday sales are extremely important for Colorado retailers. Strong or weak sales in the past two months of the year can often mean the difference between a profitable or losing year. Retailers have been extremely cautious about overstocking going into the holidays in anticipation of a challenging year. This could support profit margin a bit more than past years.

Do you expect to spend more or less this holiday season?

Personally, I will stick much closer to my budget than past years. I have always been a sucker for the impulse buy. The thought of racking up large credit card debts at this juncture could end up leaving one with a painful spending hangover in the new year.