Chain Store Age reported that Reuters and the University of Michigan on Friday released preliminary results of their survey of consumers for the month of October, which stated that the consumer sentiment index fell by more than economists had been expecting.
The decrease was the biggest monthly drop on record.
The article stated, “The bigger-than-expected drop in consumer sentiment reflected a deterioration in both consumers’ assessment of current conditions and their expectations for the future.”
The article continued. “Separately Friday, the Commerce Department reported that construction of new homes dwindled to the second-lowest level in 50 years last month, as home builders sought to reduce the number of unsold inventories in an elusive quest to find the bottom of the housing collapse.”
THE REAL WORLD RETAILING TAKEAWAY
Sometimes surprising news isn’t all that surprising
Is anybody shocked by this news? You shouldn’t be. As I’ve said, it’s going to get worse before it gets better.
The National Retail Federation is now predicting a 1.9% increase over holiday spending last year. This is down from a 2.2% growth prediction last month. I hate to say I told ya so but I’m anticipating this number to fall further still as I stated in a number of news interviews a couple weeks ago.
Stay tuned as the news continues to evolve.