MariettaEcon

http://www.msnbc.msn.com/id/9983120/ [full article]

With sales growth among U.S. consumer-products companies expected to lag behind last year's big gains, this holiday season may prove to be a double whammy for those outfits with already weakened financial profiles. On the heels of one of the worst hurricane seasons on record, in which Katrina and Rita helped drive up already steep energy and commodity prices, U.S. consumers are being forced to rejigger their usual spending habits this holiday shopping season.

Even though energy prices have retreated some in recent weeks, they remain at historically high levels. Lofty prices for gasoline and home heating fuels combined with rising interest rates may force consumers to reconsider big-ticket purchasing decisions.

At the same time, elevated energy expenses are fueling higher operating costs throughout the manufacturing supply chain, including raw materials, factory overhead costs, and transportation. The result: A further squeeze on the profit margins of consumer-products outfits
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With energy prices in record highs, one has to wonder, during this cold winter and natural disasters, how is this affecting the economy? Cold winters, gas heat, less spending this holiday season? Dramatic effects of energy prices, and recent hurricanes are definitly going to affect holiday spending this year.