Okay, I must say I expected this to happen. There’s a part of me that is happy and a part that’s a little worried. Consumer spending these past months (since October) has been declining. With the world’s largest consumer country experiencing a recession, it is no wonder (really) that we may see the worst effect to come.
Just as I speak, a lot of people are having trouble keeping their jobs. Circuit city has filed for bankruptcy, the Chicago Tribune has done the same too… needless to mention that America’s auto makers General Motors & Ford have almost filed for bankruptcy if not for talks regarding a government bailout. Ho hummm… I hope it turns out for the better by the second semester of 2009. Yep that’s how long people are predicting the pivot.
Check out this snippet from CNN’s money website.
A Commerce Department report showed spending by individuals fell 0.6% last month, after falling 1% in October. It was the fifth consecutive monthly decrease. Economists surveyed by Briefing.com had forecast a 0.8% drop.
Falling consumer prices contributed heavily to the decline in overall spending. When prices were not taken into account, spending actually rose by 0.6%. – from CNN.com
Let’s all hope for the best of 2009!