In the past, their forecasts have been relatively reliable. Just as steady is the region's and the country's increasing reliance on an economic foundation of services. But not nearly as fast as the services we consume, everything from entertainment to fast food to someone else doing our laundry or cutting our hair. Services now account for two-thirds of the gross domestic product, Owens said. Though the service sector generally resists economic downturns, subcategories behave independently.
Consumer psychology affects spending habits.
So companies such as Capital One Financial Corp. or First Union Corp. may suffer when we spend less money, Raines said. Medical services companies appear most insulated against economic problems, Raines suggested. Firms providing services such as Colonial Mechanical may be in a similar position this year. There's really a shortage for those kinds of services right now.