The spotlight in this slowdown will be trained on the same high-tech industries that led the boom. But a widespread economic slump could hold down tech growth even more. Slower growth also will be felt in traditional areas of the economy. Auto companies are struggling to cut costs in the face of weakening demand. In retail, the slowdown will be compounded by recent overexpansion among office-supply chains and other specialty retailers, and by a lackluster fashion season early in 2001.
Retail analysts expect some specialty stores to close.
And high-end retailers will be hit, ''particularly those not offering anything unusual,'' says Wendy Liebmann, president of WSL Strategic Retail, a New York consulting firm. Businesses that sell to families with modest incomes will also struggle, as wage growth slows and unemployment rises. Moreover, many families are already struggling with higher energy bills. To compete for scarce dollars, companies in nearly every industry are rolling out new goods and services. Computer makers are attracting attention with new handheld units.