The great spending boom won't be happening this year and maybe not in 2010 either. As unemployment increases it's not surprising that consumers are pulling back.
Retailers were posting disappointing monthly sales Thursday as consumers curbed spending amid higher gasoline prices and rising unemployment.
In addition, wet weather dampened demand for summertime merchandise.
Even before these factors, chain stores were facing difficult comparisons with the year-ago period, when consumers had a little extra cash in their pockets from economic stimulus checks.
Based on comment from retailers, shoppers continued to trade down to less expensive products and focus their spending on the essential items. This doesn't bode well for retailers, who are beginning to stock merchandise for the back-to-school shopping period.
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