CNN Reports Consumer Spending, Personal Income Drops
ADMIN
- December 29 2008
- 163 views
- 2 comments
Government reports released Wednesday, Dec. 24, showed that consumer spending and orders for durable goods fell to even lower depths for the month of November, according to an article published by CNNMoney.com.
“The so-called core PCE deflator rose by just 1.0% in the past 12 months, down from 2% by that measure in October. The key reading, which measures prices paid by consumers for goods and services other than food and energy, echoes a Labor Department report released last week that showed consumer prices fell by a record amount for the second straight month.
Still, declining overall spending is a worrisome sign for the holiday shopping season. It’s particularly troubling for the economy, because consumer spending accounts for more than two-thirds of the nation’s gross domestic product.”
Read the entire article HERE.
»
December 29th, 2008 at 3:42 pm
We have seen nothing yet. Things are going to become much worse in January and February. This whole financial fiasco will last at least 5 years.
The surf industry is in for it, sad but very true. Credit will not be extended too many surf company’s that need it.
Company’s will not be able to pay their team riders or pick up the shipping crates in Long Beach Ca.
Surf shops are already not paying their bills on time. Some are extended out over 90 days, some 6 months or even more.
This is going to be a big problem for the entire surf industry for they (the company’s) will be short on usable credit and or cash at hand.
China will suffer, for shops are less likely to “pre-book” items. The big mall retailers that many surf company’s rely on for their bred and butter will be closing many if not all locations. Yep, these times are going to be very hard for our little billion dollar industry. Surf Stars will have less money to spend. Magazines will have less ad pages and or revenue.
Lets face it, its going be a hard couple of years for all of us. I know that some of you good people will say “how negative I am” with my stupid assessment of the current situation in our little market, but reality is reality. Their will be good days, but will they offset the bad ones?
December 30th, 2008 at 8:42 am
Sean,
I would love to disagree with you but I can’t, I totally agree. The worst is yet to come and this spring the hammer will be dropped on both retailers and companies. Good Luck to everyone!