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

Anti-Trump Protesters Block Uber Headquarters

The TNC's CEO Travis Kalanick is one of several technology executives who's part of the president's Strategic and Policy Forum.

Toronto Operator Emphasizes Occasions

WebXclusive: Ash Fadil works to provide experiences that will have his clients coming back for more than just one special event.

What Judges Look For In OOY Award Entries

Read up on what some contenders have already submitted in their running to become an Operator of the Year.

Atlanta Operator Supports Strength In Numbers

Chad Casey knows industry involvement is a must when discovering new affiliates.

Chauffeur Retention Made Easy: Show You Care

WEB-X-CLUSIVE: The key to happy employees is understanding what they mean to you and your business.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - January 2017 $12.95 THE MONEY ISSUE COVER STORY: * Dashboard Helps Steer Company Finances * *



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