0
0
Consumers Feeling A Little Blue This Year
Fri, Aug 15 2008, 09:19 GMT
by Adam York, Mark Vitner
Consumers face one of the most challenging economic environments in decades, with a sluggish employment market, high energy prices, falling housing prices and tightening credit conditions combining to keep consumers away from stores and shopping malls. The tax rebates provided some temporary relief, but much of the benefit was offset by soaring energy costs, which took gasoline prices above $4 a gallon early this summer. Consumers are coping by cutting back on discretionary purchases, particularly for big-ticket items, travel and restaurant dining.
We expect consumer spending to weaken further during the second half of the year and expect outlays to fall at a 0.7 percent annual rate in both the third and fourth quarters. Reduced sales of motor vehicles, particularly SUVs and mini-vans, will account for most of that drop. Spending for other goods is also expected to decline, however. Services outlays, which account for around 60 percent of overall consumer spending, should continue to increase. But even here, growth will be slow as consumers are cutting back on everything from cable television to security services and yard maintenance.
Published on Fri, Aug 15 2008, 09:22 GMT
Archive
- The Outlook for U.S. Exports Yet Again
Published On Tue, Dec 2 2008, 10:40 GMT - Employment Chartbook: November 2008
Published On Tue, Nov 25 2008, 10:25 GMT - Trends, Cycles and Danger of Historical Extrapolation
Published On Mon, Nov 17 2008, 11:03 GMT - The Grinch May Roil Holiday Sales This Year
Published On Thu, Nov 6 2008, 10:53 GMT - Japan's "Lost Decade": Implications for the U.S. Economy
Published On Tue, Oct 21 2008, 08:13 GMT
Wachovia Corporation
| P.O. Box 025383 Miami, FL 33102-5383
http://www.wachovia.com | sam.bullard@wachovia.com
Legal disclaimer and risk disclosure
The information and opinions herein are for general information use only. Wachovia Corporation and its affiliates, including Wachovia Bank, N.A., do not guarantee their accuracy or completeness, nor does Wachovia Corporation or any of its affiliates, including Wachovia Bank, N.A., assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or any foreign exchange transaction, or as personalized investment advice. Securities and foreign exchange transactions are not FDIC-insured, are not bank-guaranteed, and may lose value.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.