Fitch: Stable Outlook For US Consumer Products Despite Various Stresses.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 4, 2002 Despite weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and retailer concentration
resulting in increased competitive activity and pricing pressure, the
Outlook for the consumer products industry is Stable, according to according toprep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a special report published recently by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . "Consumer products companies have adapted to the difficult environment by concentrating on several key areas such as preserving solid retail partnerships with key retailers, maintaining leading brands, increasing productivity through cost cutting and improving cash flow generation," said Karen Lynch Ghaffari, Director, Fitch Ratings. Household goods and personal care companies should continue to perform well for the remainder of 2002 and into 2003, while durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. companies could see downward pressure as consumers delay purchases or trade down to lower price points. "Purchases of large items and luxury goods remain vulnerable, but a strong housing market and recent record mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. activity can provide homeowners with additional funds that can be used for home improvements," said Ghaffari. While Fitch remains cautious about future consumer spending levels in both the U.S. and overseas, consumer products companies that offer a broad range of innovative products and strong customer service levels will be successful. To obtain a copy of 'Consumer Products: Key Trends Point to Stability', visit the Fitch Ratings web site at 'www.fitchratings.com' or contact the Ratings Desk at 800/893-4824. |
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