Operations

American Economy Continues to Slow

Posted on January 16, 2008 by LCT Staff - Also by this author - About the author

U.S. — Yet more data is emerging that consumer spending has begun to slow, potentially leading to the first decline since 1991. This would almost certainly push the entire economy into a recession in the middle of an election year.

A number of retail chains reported lower-than-expected sales in December, and American Express said that starting in early December the growth in the rate of spending by its 52 million cardholders, a generally affluent group of consumers, fell 3 percentage points, from 13% to 10%, the first slowdown since the 2001 recession.

“This is the real deal — consumers are slowing down across the spectrum,” said David Schick, a retail analyst at Stifel Nicolaus. Other analysts are more optimistic, and there are some bright spots now in consumer spending. Sales of sports gear and electronic gadgets — particularly G.P.S. navigation devices and flat-panel television sets — have risen over the last three months.

To Stephen Baker, vice president for industry analysis at the research firm NPD Group, that suggests there is still enough purchasing power for people to buy what they really want. “We probably would not have seen strong sales for electronics products that people really want if the overriding issue was economic,” Baker said.

SOURCE: New York Times

View comments or post a comment on this story. (0 Comments)

More News

Rhode Island Operation Buys Wedding Trolley Service

Operator John Olinger of ROCKSTAR LIMO / O2 Global plans to grow the fleet of Kenny's Coach and Trolleys.

Sister Duo Absorbs What Industry Offers

eNews Exclusive: Briana and Chelsea Candeub of Park Avenue Limousine have learned the importance of never letting educational opportunities pass them by.

Luxury Travel Trends Disrupting The Industry

Brands can no longer rely on low-hanging fruit. Instead, they need to implement differentiating strategies to succeed going forward.

Chosen Payments Assists Operator Who Was Scammed

A suspect used a mobile app to place ride orders directly into a New Jersey company's software system.

Young Limo Entrepreneur Makes His Mark On The Industry

ENEWS EXCLUSIVE: Moe Ahmed started his California-based company at 18 and proves anything is possible when you have an incredible work ethic.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close