December 16, 2006
Shoppers Shake Off Housing Slowdown
Shoppers Shake Off Housing Slowdown
A sharp slowdown in the housing market isn't darkening consumers' moods as feared, suggesting they will continue to be a source of strength in the economy through this year and possibly into 2007.
Results from the first few days of the key holiday shopping season point to increases in retail sales from a year ago, despite a mediocre performance at Wal-Mart, the nation's largest retailer.
With consumer spending accounting for more than two-thirds of U.S. economic activity, spending gains are good news for the broad economy as it faces a number of headwinds, including the housing slowdown and turmoil in the automobile industry.
"A lot of the worries out there about consumers … are all much exaggerated," National City chief economist Richard DeKaser says.
