Tuesday, August 28, 2012
Next Year's Economy (2012)
Walking the tight-rope of another recession, or maybe not, the economy is balancing on one hand increases (albeit small) in home prices through the national average and S&P/Case-Shiller index from a year ago, which is good. But on the other hand, confidence among consumers, measured by the Conference Board is down, which is not so good.
Energy prices are up, but demand will soon curve that down as Americans will simply not use as much gas. But, this year's drought (which in some parts is actually year two) will most likely put upward pressure on food prices around harvest time, which will make things just that much more expense for consumers.
Unemployment is still high and not going to change in the near term, so the x-factor going into 2013 will be spending for the holiday season.
2012 has already written its story, and it was not an impressive one, but the excitement (or lack thereof) that this year's election can drum up should carry forward into holiday spending. I hope Obama and Romney plan on keeping things interesting, next year's economy needs it.