Strong Christmas shopping ahead, predicts Morgan Stanley

Retailers, be of good cheer. Morgan Stanley consumer specialists have put pen to paper and their math suggests shoppers will be spending more this holiday season because they have more cash for discretionary purchases, like holiday gifts.
 
The Morgan Stanley Consumer Liquidity Index applies a simple money-in, money-out formula to wages and expenses and, according to Bloomberg Businessweek, has concluded that fourth-quarter spending should be up 2.9 percent this year over 2013.
 
The index's findings are consistent with the National Retail Federation's forecast of a  4.1 increase in holiday sales, which isn't adjusted for inflation.

Read more from Bloomberg Businessweek.