Odd Economic Indicator: Its in the Bag!

Monday, July 07, 2008 | 11:41 AM

Sometime ago, Dan Gross got us thinking about all manner of weird economic indicators. This one, via Merrill Lynch, falls cleanly into that categories: Luggage Sales:

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Luggage sales fall off the carousel
Unit sales of luggage: 6-month annualized % change, (millions)

Luggage_sales

chart courtesy of  Merrill Lynch:
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David Rosenberg:

We track luggage sales as a barometer of travel plans – and they have fallen in two of the past three months and are running at a near-record 35% annual rate over the past six months. Either people intend to stay close to home (which requires a ‘cocooning’ theme) or those who do intend to travel are scaling back their suitcase purchases in response to the advent of these airline per-bag fees.

Why buy a bag that is only going to be another cash-flow drain? Simply wear everything you would have packed (not comfortable but a lot cheaper).

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Source:
Empty suitcase: No Luggage Sales = No Travel Plans
David Rosenberg
Merrill Lynch, July 7, 2008
http://tinyurl.com/69s6hx

Monday, July 07, 2008 | 11:41 AM | Permalink | Comments (24) | TrackBack (0)
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Comments

Freddie Mac has fallen off a cliff...nobody seems to care. WAKE UP!!!!!! Down almost 20% in a few days. Fed will be in emergency mode to shore them up and won't be able to rescue the IndyMacs of the world. Several homebuilders in grave danger also...anybody care????

Posted by: Steve Barry | Jul 7, 2008 11:52:21 AM

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