Monday, January 14, 2008

Fronting: Big consumer spending pullback

Potentially market-moving stories to watch this morning, with special resonance for the newspaper industry:
  • Americans cut back sharply on spending, The New York Times: "Strong evidence is emerging that consumer spending, a bulwark against recession over the last year even as energy prices surged and the housing market sputtered, has begun to slow sharply at every level of the American economy, from the working class to the wealthy."
  • Economy hit as consumers tighten belts, The Wall Street Journal: "The consumer leg of the economy, which has been remarkably stable throughout the housing downturn, may now be tottering. . . . Consumer spending fuels around 70% of U.S. economic output, so a pullback could severely crimp growth."

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