Moderate Growth for Consumer Products

Data source: Federal Reserve Board
Forecast: Mountaintop Economics & Research, Inc.
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The outlook for most of the consumer products markets in the U.S. calls for moderate growth in 2010, followed by stronger gains in 2011 and 2012. Consumers will spend more this year than they did in 2009, but there are still some substantial impediments to spending growth. These include: slow wage/income growth, rising energy and materials prices, high unemployment rates and a sluggish housing market. Consumers have also become more frugal, and they are presently choosing to save more and pay off debt. All of these constraints will loosen gradually in the coming quarters.
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