Weary from a long fight, consumers are retrenching, cutting purchases across the board
Bloomberg Oct 31, 08 9:24 AM CDT
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The punches are coming from all directions and consumers, beaten down and out of breath, are clearly ceding the fight through decreased spending, Bloomberg reports. The scorecard released today says it all: consumer purchases were down 0.3% in September, the biggest drop in 4 years, capping the weakest quarter in 30 years. Inflation is also cooling, today's report found, giving the Fed, which warned this week of further “downside risks,” more room to maneuver.
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Food makers shrink packages instead of hiking prices
New York Times Sep 14, 08 8:54 AM CDT
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The half-gallon of ice cream is going the way of the soda fountain, as many manufacturers shave ounces off the size of prepackaged foods—without reducing prices, reports the New York Times . The practice, a response to the bump in transportation and ingredient costs, isn't novel, but the reaction is, with consumers going online to criticize the trend. Still, sales have only dipped slightly.
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glossies
New generation can tell grandkids they walked to school
Newsweek Sep 7, 08 7:55 PM CDT
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As high gas prices strangle US school budgets, more officials are cutting back where it hurts student scores least: school buses. Some schools are limiting or redesigning bus routes, but others have nixed busing entirely, leaving thousands of kids to hoof it under adult supervision. Some parents object, but many are thrilled to see kids walking like they did, Newsweek reports.
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PC maker will shed infrastructure in effort
to stay competitive
Wall Street Journal Sep 5, 08 9:30 AM CDT
(Newser)
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Dell is looking to sell off its computer factories, the Wall Street Journal reports, drastically altering a business model that was once the envy of the industry. Journal sources say the aim is to sell most, if not all, of the plants in the next 18 months; most likely buyers would be big contract manufacturers expert at finding efficiencies in manufacturing.
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Fukuda hopes move will clear parliamentary gridlock
Associated Press Sep 1, 08 11:42 AM CDT
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Yasuo Fukuda has resigned as Japan’s prime minister, the AP reports. Fukuda said he was stepping down to ensure that a special session of parliament to address the economy runs smoothly. Fukuda, whose approval rating is at 29% after less than a year in office, has presided over a split parliament, which has caused bitter legislative gridlock for most of his term.
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Strong farming economy highlights nationwide differences
Washington Post Aug 20, 08 2:33 PM CDT
(Newser)
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Driven by rising food prices and farmers’ access to loans, the Plains states are a bright economic spot amid the nationwide slump, the Washington Post reports. Farm country was able to avoid the housing bust because it also avoided the boom. And retail space is filling up as consumer spending has remained strong.
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opinion
Why the airline doesn't deserve a second chance
BusinessWeek Aug 13, 08 5:49 PM CDT
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What with the oil price spike, times are rough all around for airlines, writes Roben Farzad for BusinessWeek . But United presents a uniquely bungled case, and it is irresponsible to pity it along with other struggling players in the industry. "Even if the airline devised a way to run its 767s on oil from all the peanuts it has wrested from passengers, the institution seems almost culturally incapable of banking a profit," writes Farzad.
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Fees see an increase in a move to cut costs
New York Times Aug 7, 08 4:50 PM CDT
(Newser)
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American Airlines has added stiffer fees and higher mileage requirements to its frequent-flier program as the airline struggles to cope with fuel costs, the New York Times reports. American, which posted a $1.16 billion loss for the second quarter, is following the lead of Delta, which tightened the purse strings for its frequent-flier program last week.
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Latest extra charge to hit travelers
Newsday Aug 5, 08 2:04 AM CDT
(Newser)
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JetBlue has begun charging passengers $7 for pillows and blankets, Newsday reports. Flyers can keep the items, but there's no guarantee they will be available. It's the latest in a litany of extra charges facing passengers as carriers deal with soaring fuel costs. "This nickel-and-dime stuff doesn't work," said a spokesman for a consumer group. "A lot of people view this as harassment."
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Soaring fuel may be stunting sales, but owners won't surrender
Associated Press Jul 27, 08 11:37 AM CDT
(Newser)
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Sure, the Hummer may be going the way of the dinosaur: Sales are down 40% this year on soaring gas and an eco-image problem, and GM is looking to ditch its troubled brand. But for owners, the AP reports, outsized pride remains part of the package. "It definitely sparks some intense reaction from people on both sides," says one Hummer owner, whose baby was attacked last year by baseball-bat-wielding vandals. But to sell? "I love this car," he says.
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Limited flight schedule will lead to price increases
USA Today Jul 18, 08 1:40 PM CDT
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Get ready—this holiday season is going to boast some of the most expensive airfares ever, USA Today reports. Because of high fuel costs, most airlines have cut back flight schedules; figure about 9% fewer flights in November compared to a year ago. Having constricted supply, expect the airlines to raise prices $50-$200 extra per seat. And don't bank on any late holiday sales.
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OPINION
A call for a return to
the days when driving was for rich jerks
Los Angeles Times Jul 11, 08 11:17 AM CDT
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Gas, as you may have heard, has topped $4 a gallon, and Joel Stein of the LA Times loves it. "Cheap gas is unfair," he argues, tongue mostly in cheek. Heck, why not make it $8 or even $10 a gallon, as in Europe, "where they have fewer road deaths even though they drive like complete idiots"?
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Too pricey to keep 'flying tankers' in the air
Wall Street Journal Jul 8, 08 4:52 AM CDT
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Super-long flights were hailed as the future of aviation only a few years ago, but the soaring price of fuel has grounded those plans, reports the Wall Street Journal . Airlines are delaying or canceling intercontinental routes as the cost of keeping "flying tankers" in the air for over 12 hours stops making economic sense.
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Massive layoffs planned in response to rising fuel costs
Dallas Morning News Jul 3, 08 10:56 AM CDT
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American Airlines plans to cut as many as 900 flight attendants from its ranks next month as part of nearly 7,000 expected layoffs this year, reports the Dallas Morning News. The job cuts, intended to counter rising fuel expenses, mirror an intended 8% reduction in the airline's worldwide flights. The cuts will leave American with fewer than 80,000 jobs, a low it hasn't hit since 1988.
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