Do Light Bulb Sales Portend Economic Slide?
Subtle consumer signs can reveal the country's economic health.
Oct. 17, 2007 — -- Recent headlines about the economy have been troubling: Housing prices are down and home foreclosures up. Oil prices are now at sky-high levels. Some economists are even talking about a potential recession.
But economists often pinpoint more subtle signs of a downturn in the economy.
Former General Electric CEO Jack Welch said he could see economic troubles ahead based on light bulb sales. In good times, people buy bulbs in packs of six. In bad times, they buy them one at a time.
This holiday season will bring its own red flags:
People will likely buy more practical presents, so be prepared for a new sweater in place of jewelry this holiday season.
You'll have no trouble getting a table at the fanciest restaurant in town.
The biggest Christmas trees and largest Thanksgiving turkeys go unsold, with shoppers opting for smaller, cheaper trees.
Your usually festive neighbor suddenly scales down on lights and decorations. He's probably not out of town — just out of cash.