Continued Low Sales Could Damage Economy

By Joyce M. Rosenberg, Ap | THE JOURNAL RECORD, November 12, 1988 | Go to article overview
Save to active project

Continued Low Sales Could Damage Economy


Joyce M. Rosenberg, Ap, THE JOURNAL RECORD


As anyone who follows the retail industry can tell you, consumers just aren't spending the way they used to. Sales at many of the nation's biggest retailers have been slow for almost two years now.

The retailers have learned to adjust, shifting the focus of their business from generating sales to maintaining profits. And the investment analysts who track retail companies are stressing cost controls rather than revenue.

So, everything is OK, right? Maye we don't need to worry about how many refrigerators Sears sold last month or how the white sale went at Lord & Taylor.

Wrong, the economists say.

The retailers may have figured out how to survive the slump, but the economy - and the rest of us - are likely to suffer in the end if consumers continue to hold tightly to their purse strings.

``Any kind of slowdown (in consumer spending) will show up in lower production and unemployment,'' warns David Wyss, chief financial economist for Data Resources Inc., a Lexington, Mass., firm that forecasts economic trends.

Consumer spending accounts for about two-thirds of the gross national product, the broadest measure of the economy's health. If consumers make fewer purchases, they could force the economy to slow down or even slip into a recession.

So far, the slowdown in retail spending has not been readily apparent in the GNP figures. The Commerce Department said overall consumer spending increased by 3.5 percent from July through September, following a 3 percent rise in the second quarter, although at the same time, many big retailers reported their sales couldn't keep up with inflation.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Continued Low Sales Could Damage Economy
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?