| American consumer is a hard animal to predict
Dow Jones Industrial Average (DJIA) fell for the fifth consecutive day on Thursday after US Nations biggest retailer Stores dragged the DJIA below 12000.
Wal-Mart, the world's largest retailer, shares fell 1.2 percent to $48.29 with the decrease in sales. The retailing companies gave disappointing sales after US customer confidence waned.
The hike in labor cost didn’t make any significant change in the production as expected by the experts. Even with the increased income and decline in oil prices has not made any change in the rate of spending. Concerns over the inflation and slowing economy are still keeping the consumers at bay and they are reluctant to spend their money.
Lower income class and middle income class people are the gainers with the lower oil prices and they are backing some money in their wallets. When the oil prices are soared up, it tightened the money of the consumers and there will be mirror impact when the prices are down. The experts are expected more sales but the consumers given different judgment and they are becoming very choosy in spending. US consumers are more skeptical with the Federal Reserve interest rates and the economic condition.
Wall Mart and other retailing companies are planning to cut the prices and production expanses to acquire the large number of customers in holiday shopping season. Let’s hope the US customer will be delighted with these price cuts and enjoy the festive season.  | 
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11-03-06, 05:05 AM
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