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TulipTools Internet Business Owners and Online Sellers Community › Ecommerce › Ecommerce › General Ecommerce Discussion v
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Consumer Spending Hurt by Katrina, High Energy Prices

  
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Consumer Spending Hurt by Katrina, High Energy Prices
09-30-2005, 06:07 PM,
Post: #1
mandy Offline
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Consumer Spending Hurt by Katrina, High Energy Prices
Quote:The worry is whether the surge in energy prices, partly reflecting the shutdown in production along the Gulf Coast, will so rattle consumers that the economy could be pushed into a full-blown recession.

...consumer spending, after adjusting for inflation, plunged by 1 percent in August, the biggest decline since September 2001,

...the toll from Katrina and Hurricane Rita, which struck in September, is likely to depress economic activity for several months

http://www.ecommercetimes.com/story/S6bG...ices.xhtml
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10-03-2005, 04:09 AM,
Post: #2
bargainbloodhound Offline
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Re: Consumer Spending Hurt by Katrina, High Energy Prices
There's a Bloomberg story here:

http://www.bloomberg.com/apps/news?pid=10000103&sid=ammlFC3r4HFU
Quote:...the slump in consumer spending may spread beyond autos this month as Americans forgo nonessential purchases, such as visiting restaurants or buying clothes, to pay soaring fuel bills

The affect of higher energy prices rather than the aftereffects of the two hurricanes is what could hurt consumer spending if energy prices continue their sharp upward march.  Rising fuel prices seem to be putting a damper on spending in many countrries including the US and UK (see link below), but they haven't risen enough to cause people to make drastic changes in their spending patterns:

Quote:...a survey by the Confederation of British Industry this week showed retail sales in September fell at their sharpest annual pace in at least 22 years.

http://uk.news.yahoo.com/30092005/325/co...falls.html
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