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This may cause firms to reduce investment and households to trim their spending.
ALL retailers are feeling a pinch these days, as once-euphoric consumers trim their spending, period.
Households that have borrowed too much in relation to their income trim their spending, the main component of GDP.
The biggest danger is the build-up of consumer debt in some economies, such as America, Britain and Australia, which may eventually cause households to trim their spending.
Economists call such abrupt responses "non-linearities" and they suggest that when the price rises fast enough, consumers and businesses trim their spending and investment plans.
Noting that the husband and wife had not lost their jobs, she said their worries about a downturn had evidently persuaded them to trim their spending.
Similar(47)
Is it any wonder that they have trimmed their spending?
Many big oil companies are trimming their spending across the board.
It is more likely that Rackable's government, biotech and large-business customers trimmed their spending.
While trimming their spending on ShoWest, some studios say they will remain loyal.
Gates said aid is threatened as governments face budget deficits and many consider trimming their spending on projects outside their borders.
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