Rising prices for energy and raw materials are slowing growth in service industries according to a report by The Institute for Supply Management. In the meantime, prices paid by retailers and builders are at their highest since September. The Federal Reserve predicted such changes and is considering a halt on its current interest-rate increases. In another sign of an economic slowdown, employers hired fewer employees in May than they have in the last seven months.
Some credit these retail woes to high gasoline prices which are shaking consumer confidence. Put simply, if it costs too much to drive to the store, people are less inclined to bother. Another factor seems to be that in recent years consumers have used equity as a source of spending capital. As the housing market has dried up, so has this resource.
Though these factors seem certain to affect retail business in general, some, like Copernio Corporation CEO Peter Berghammer, believe that CE retailers will not be the first ones hit -- “Due to the perceived nonessential nature of prerecorded media, music downloads, television, computer and home theater systems, the impact made on this sector is not nearly as drastic as it could be since consumers have not yet made them nonessential purchases.”
David Thomas, CEO at Evident, is an accomplished cybersecurity entrepreneur. He has a history of introducing innovative technologies, establishing them in the market, and driving growth – with each early-stage company emerging as the market leader.