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Posted: Tuesday, 27 October 2009 10:22PM
Consumer Confidence Drops, How Could it Affect Retail, Autos?
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Buffalo, NY (WBEN) -- The Conference Board says the consumer confidence indexed slid six points in October. One local expert says this confirms fears about a not-so-Merry Christmas for the retail industry.
Ted Schmidt, Associate Professor of Economics and Finance at Buffalo State College, points the blame at a lagging job market. "The key is, most people are saying they're having a difficult time finding jobs," says Schmidt. He says the fears about the upcoming retail season being sluggish have been confirmed with the latest report. "Consumers spend based upon their income. If people are losing jobs, they're not going to use debt to finance purchases for Christmas goods," warns Schmidt.
Schmidt says the auto industry is also feeling the effects of a lower consumer confidence index. "Half of the population said they have no plans to buy automobiles," notes Schmidt. He says government programs have helped the industry but that's been dampered by other things happening that have blocked employment growth.
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