Report says consumer spending is weak in St. Louis
The St. Louis Federal Reserve Bank has more downbeat news this week about the region’s economy. Its Burgundy Book report, focusing on 71 counties in Missouri and 45 in Illinois, tells of slow retail sales, a weak housing market and a decline in bank lending. Perhaps the most dire news comes in the section about retailing (the sales surveys are for October and early November):
Eighty-six percent of general retailers and 100 percent of car dealers indicated that sales were down compared with the same period in 2007. Nearly all general retailers noted that sales were below expectations. … The sales outlook for the remainder of 2008 was mostly pessimistic: 57 percent of the general retailers and 100 percent of the car dealers expected sales to decrease over 2007 levels.
The information on construction is anecdotal, but worrisome nonethless:
A commercial construction contact in St. Louis reported concerns over his clients’ ability to finance committed future work because of current credit market conditions. A Districtwide commercial construction contact reported that backlogs are shortening and interest in new projects has slowed sharply.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
It’s not surprising spending is down when all you hear is doom and gloom on every television newscast, radio show or newspaper article.
I am firm believer in the self fulling prophecy theory. Basicaly people are being told don’t spend because your job could be next, it feeds on itself.
Hey how many are sure of their job.Maybe some of those with secure jobs should go spend more. it is a fact that there have many job cuts some from places which should be secure. Gm ford and chrysler are cutting production in first month And some of the transplants are cutting production.
For Mr. Nicklaus, do a report on tax incentives states gave the foreign plants to locate in their state,some of that money is reimbursed by fed in some ways,report on how much money the foreign transplants gave to senators opposed to big 3 loans.
Make sure and visit the mall tomorrow night and tell me how many open parking spots you find within sight of the entrance. The malls I have been to this fall, have all been very busy on any weekend day/evening. Just came home from Christmas shopping at West County. It was fairly busy, and I had to wait in line everywhere we went. Forget all this doom and gloom talk. Let’s hit up our congresspeople to put some money back in our pockets, before they give it all away!
In a recession, where you are not guarranteed a secure job (without a contract), you have to be prudent in your spending. We are a spending society, and if we don’t spend, it is gloom and doom, people will get laid off, but you can’t go and spend everything just to ensure that everyone else is safe and secure. We’re out of credit (money) and that means no spending. Ride it out and we’ll be stronger in the end - as long as there isn’t another recession brought on us by unethical Wall Street Greed, or some other SCAM we’re suppose to believe won’t happen again…
It’s a pity that some of the major names in St. Louis like Pottery Barn and Ann Taylor have such terrible service this year. The stores in Chesterfield mall actually have managers that lack the necessary focus on customer service orientation. It won’t be a big surprise when some of these folks find themselves out of job.