Economy no Roadblock for Consumer Goods
Despite rising interest rates, increases in fuel prices and a mixed group of other factors, the outlook for second quarter 2000 remains strong in the consumer good arena, particularly electronics.
And although growth rates have slowed somewhat, appliance manufacturers continue to see valid gains in sales after last year's record-setting sales.
General Electric, for example, experienced no real break in deliverables despite fewer than expected housing starts and existing home sales. The company continues to worry how inflation may affect the company's supply base or the sources for many of the components related to GE appliances.
Officials at consumer electronic companies reported higher than expected gains, especially in the DVD category. An economist for the Consumer Electronics Association said seven percent of U.S. Households have DVD players.