Mixed forecast for U.S. retailers

According to IHS Global Insight, the final Reuters/University of Michigan Consumer Sentiment expectations index fell 1.4 points compared to the final October reading.
By Patrick Burnson, Executive Editor
November 23, 2012 - LM Editorial

Consumer sentiment has taken a hit after the presidential election due to increased awareness by many Americans of the fiscal cliff and stock market volatility.

According to IHS Global Insight, the final Reuters/University of Michigan Consumer Sentiment expectations index fell 1.4 points compared to the final October reading.

Survey respondents are significantly more pessimistic on the future path of the economy and their personal finances since the media and politicians focused on fiscal cliff issues the day after the presidential election. Prior to November 7, most Americans were not very concerned with the fiscal cliff. There are some positives on the consumer front, such as falling pump prices, improved housing numbers, and wage gains that are likely to outpace price increases.

“If the political rhetoric and finger pointing reaches a fever pitch similar to that of the debt ceiling crisis in the summer of 2011 then consumer confidence is likely to take a very serious hit, and this holiday season will not be very cheerful, said IHS economist Chris Christopher.

Still, he expects holiday retail sales to rise 3.9% above last year, not as strong as the past couple of years, but a good showing. Holiday retail sales increased approximately 5.5% in 2011 compared to 2010.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Bill to direct $5 billion in funding to 1,600 infrastructure projects throughout the state.

The PMI, the ISM’s index to measure growth, fell 1.4 percent to 51.5 (a PMI of 50 or greater represents growth), declining for the fifth straight month since reaching 57.9 in October 2014. And it is 4 percent below the 12-month average of 55.5. The March PMI is at its lowest level since May 2013’s 50.1.

The visit is intended to highlight the city's warehousing, distribution and logistics industries.

In today's supply chain, the only constant is change. Our white paper 'Change Your Perspective: Four Keys to Effectively Adapting to Rapid Change in the Distribution Center Environment' provides key insights on not only adapting to trends, but which trends will enable you to achieve running the warehouse of the future.

Custom pallet manufacturer and global provider of temperature assurance packaging join association.

Article Topics

Blogs · Inventory · Logistics · Retail · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.