Lynn Franco
Lynn Franco
appear christmas consumers heading last less spirit thanksgiving year
Consumers appear to have less Christmas spirit heading into Thanksgiving this year than last year,
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Consumers appear to be weathering the steady rise in gas prices quite well,
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Consumer confidence readings continue to indicate a strong overall economy. Consumers are not only optimistic about current conditions, but their expectations for the next six months signal continued low unemployment and minimal inflationary pressures.
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Consumer confidence continues to bounce back and is now at its highest level since Hurricane Katrina struck the Gulf Coast.
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With unemployment at a 30-year low and the short-term Conference Board forecast projecting favorable labor market conditions, confidence is expected to remain strong through the summer. Volatile financial markets and interest rate hikes are not expected to have a significant impact.
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Higher prices are driving more shoppers to the Internet instead of to the mall and changing the way consumers are doing their holiday shopping this year.
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Hikes in interest rates, severe drought conditions in the Northeast, and rising gasoline prices have helped dampen overall consumer optimism.
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We've noticed that with the 24-7 electronic-technological boom over the last several years, things have really accelerated. The pace of change, the learning curve on the job -- we're seeing some of that stress spill over and have a negative effect on employee attitudes.
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While overall confidence remains relatively positive, the latest reading reflects growing concerns that U.S. economic growth may be slowing down. And, while the outlook for corporate profits remains optimistic, rising interest rates and oil prices may curb business leaders' projections.
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While nearly 90 percent of consumers say they will not cut back on their buying plans, it's important to note that this figure is very likely to fall as widespread layoffs begin to materialize,
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I think what we're seeing here, ... is that wages, overall, have always been seen as being at the low end of the totem pole. People are never quite satisfied with their wages. We don't find many folks who say they're overpaid.
consumer impact shocks
Historically, shocks have had a short-term impact on consumer confidence, especially on consumers' expectations.
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Whatever stock market effect we've had probably was felt in the present conditions index, but the overall index remains strong, ... The boost in optimism, coupled with tax refunds, should continue to fuel spending.
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Recent turmoil on Wall Street and in worldwide financial markets, along with continuing layoff announcements, have not dampened consumer confidence,