Retail Group Predicts Consumer Spending Slowdown in 2006

[mandy]

A slowing housing market, rising energy costs and higher interest rates will contribute to a slowdown in consumer spending in 2006, a retail trade group predicted yesterday. Retail industry sales -- which exclude cars, gas stations and restaurants -- are expected to rise a modest 4.7 percent this year, according to the National Retail Federation.

Consumer spending -- on everything from home improvements and new sport utility vehicles to restaurant meals and pricey handbags -- now accounts for about two-thirds of all U.S. economic activity. "Consumers are more maxed out on credit than they were at this time last year," said Pearl Kamer, chief economist at the Long Island Association.

full article: http://ecommercetimes.com/story/RRj2G25h...2006.xhtml