Consumers in the US cannot afford cars and houses, at least not based on current economic information.
A look at the McDonald’s (MCD) numbers show that people can still buy hamburgers and premium coffee, but what about things that cost a little more.
According to Sony (SNE), the US slowdown is not hurting sales of consumer electronics. That may make sense. Recent comScore data shows that online sales of electronics and game consoles are up about 100% from the holiday season last year.
But, the CEO of Sony put a point on that. The shaky economy "has not affected electronics in the U.S. We are holding up," Howard Stringer, the CEO of Sony said, quoted in The New York Times. "Black Friday turned out to be very good for consumer electronics sales, and very good for PS3 (PlayStation 3) sales, PSP (PlayStation Portable) sales and beyond.", he added.
What the US economy may be seeing is half a recession, one in which the consumer will not buy high ticket items. He no longer has the home equity loan and his mortage is about to reset to a higher payment.
But, the American consumer does not appear to be willing to give up his beer, fast food, and electronics gadgets. Not yet, anyway.
Douglas A. McIntrye
Contact [email protected] for any questions or corrections.
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