Wednesday, August 06, 2008

Consumer Confidence in Scary Territory

Amid the highest unemployment rate in four years and the lowest consumer confidence since 2002, consumers are closing their wallets.

Consumer spending fell 0.2 percent, the largest drop since February, the Commerce Department revealed Aug. 4. The decline comes despite a $168-billion stimulus plan that includes income tax rebates.

Some of the blame is being attributed to inflation. The Consumer Price Index, which measures prices at the retail level, is up 5 percent in the trailing 12 months, the largest one-year increase since 1991.

Add a volatile investment climate, mortgage troubles and skyrocketing food and energy costs — the CPI excludes food and energy inflation — and one has to wonder how much money might be left for golf.

The National Golf Foundation has reported fewer rounds across most golf properties, but the largest declines reside in public facilities, where play is down 2.5 percent so far this year. Play at private clubs fell 1.8 percent this year.

What do you see in your market? Are daily fee courses suffering more than country clubs?

— David Frabotta, Senior Editor

1 comment:

Anonymous said...

Daily fees are certainly suffering more. CCs will always be more insultated.