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How consumer spending bears up in coming days and weeks is crucial, said Alan J. Gottesman, an analyst at West End Communications/Consulting in New York, because in crises, marketers have a simple strategy: "If you think consumers are not going to buy, you stop selling to them.
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Analysts said the slower pace of consumer spending would bear watching since spending drives two-thirds of national economic activity.
But your reference to "a consumer spending spree financed by wages that bore no relation to productivity" in Hungary in 1994, is wrong.
Back in 1994 Hungary's current-account deficit stood at 9.4% of GDP, thanks to a consumer spending spree financed by wages that bore no relation to productivity.
"This bodes well for consumer spending in 2015, although it needs to be borne in mind that consumers have faced a prolonged squeeze on their purchasing power.
Economic bears point to new layoff announcements at Sony and Electronic Data Systems and predict consumer spending will slow without new tax rebates, leaving retailers with a disappointing Christmas.
J.P. Morgan's James F. O'Sullivan, one of the blue-chip bears, publishes an estimate of the impact of stock market gains on consumer spending, which makes up about 70% of GDP (see bottom chart, p. 21).
J.P. Morgan's James F. O'Sullivan, one of the blue-chip bears, publishes an estimate of the impact of stock market gains on consumer spending, which makes up about 70% of GDP (see chart, left).
Although Mr. Sakaiya insisted that consumer spending, which accounts for 60percentt of economic activity here, would pick up early next year, the statistics do not bear him out.
Consumer spending has weakened.
Consumer spending jumps.
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