A recession is more likely when confidence levels and expectations for the future both decline. Wiginton and Bowlan, both of Berclair, have their reasons for being concerned. We're the ones having to scrimp and save because Social Security is not going to be there. But often, it doesn't matter if consumers have personal reasons to believe the national economy is slowing. If consumers see layoffs and hiring freezes, they know that someone is suffering economically.
Consumers usually delay the purchase of cars or appliances and become more price-conscious.
Fred's Inc. are reporting record sales. Consumers will need clothing, home furnishings and groceries and will look to discounters for lower prices. Fred's isn't the only area retailer with a growing customer base when consumers are worried about the economy. When the economy goes south, there are more older cars on the road and more people who decide to do their own work, Burns said. That base grows larger as the economy goes downward.