Tag Archives | consumer spending

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Western retailers rely on luxury or budget sales

Consumer spending, particularly in the developed economies, is critical to the chemical industry. And there is increasing evidence that a two-tier pattern is developing: • Wealthier consumers are maintaining their spend, helped by lower interest costs on mortgages and recent stock market gains • Lower and middle-income consumers remain under pressure, as they are more […]

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US consumers enter the ‘new normal’

The US consumer accounts for 16% of total global GDP, with a value of $10trn. By comparison, total Asian consumption is under $5trn. China’s consumption in 2008 was just $1.6trn, about equal to the UK. Changes in US consumer behaviour are therefore critical to global GDP, and hence to chemical demand. The chart above, from […]

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EU consumers worry about the economic outlook

European consumers remain very wary about the future. The slide above, from the monthly CEFIC report, shows that fear of unemployment is THE major concern. Almost half the population, a net balance of 44.3%, worried about this in December (yellow column), only slightly fewer than in November (blue column). This concern creates a major headwind […]

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US faces a jobless “recovery”

Today is Labor Day holiday in the USA. But sadly, the latest news on jobs remains deeply worrying. As the chart from the New York Times shows, jobs are still being lost (blue line), long after recovery had begun in downturns from 1974 – 2000. And far more jobs have already been lost. Total jobs […]

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US and EU dominate global consumption

Interesting new research from Prof Nouriel Roubini provides some perspective on relative levels of consumer spending around the world: • US private consumption accounted for 16% of total global output in 2008 • It was valued at $10trn, just ahead of European consumption at $9trn • Total Asian consumption was under $5trn • China’s consumption […]

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Lies, damn lies, and statistics

Source: Chartoftheday.com There are “lies, damn lies, and statistics” according to Mark Twain, the famous American humorist. His argument was that statistics are often (a) untrue* and (b) used without the necessary context. Last week provided a perfect example of the latter. As the blog’s own Boom/Gloom Index© shows, sentiment is currently very positive in […]

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Deflation hits the USA

US consumer prices fell for the first time since 1955 last month. Deflation was more common before 1955, and in the 1929-33 period prices fell by c10% a year. The danger of deflation is that it changes the entire psychology of purchasing. With inflation, it is better to buy today, because the product/service will be […]

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Global chemical production down 4.4% in November

Global chemical production is now falling at an alarming rate, down over 4% in November, as core demand from housing/construction and auto markets collapses. Only the Middle East is now seeing positive growth year-on-year. As the chart shows (using ACC data): • N America is now down 12% • W Europe/C&E Europe are down over […]

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Dow warns

Dow CEO Andrew Liveris has spelled out very clearly his concerns about the impact of the US subprime crisis and high energy prices. He said that last week’s Fed Funds cut ‘flirted with danger’ in terms of the risks it took with inflation, although it was clearly necessary in order to tackle other problem areas. […]

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