The global economy took a hit following the massive earthquake, tsunami and subsequent nuclear reactor meltdown fears that have rocked Japan over the past two weeks.
Recent reports suggest the initial natural disaster will cause economic ripples as companies struggle to rebuild. Specifically, the widespread disruption in standard business practices would likely lead to increased prices and shortages as affected companies (and consumers) struggled to recover.
New data compiled by the Consumer Electronics Association paints a bleak, if expected picture of consumer confidence in the aftermath of the disasters.
The Index of Consumer Expectations, which is based on information the CEA culls monthly, fell again reports Home Media Magazine. The index "measures consumer confidence about the broader economy," explains the CEA. Ostensibly, the cause for the decline isn't limited to the damage wrought in Japan following the 9.0 earthquake, however.
According to a CEA press release that discussed the findings, other factors impacted consumer confidence levels as well.
“Increasing geopolitical concerns around the globe and weak results for the housing market domestically, coupled with the tragedy in Japan, have kept consumers on edge,” said CEA Chief Economist Shawn DuBravac. “Consumers are still adjusting to higher gas prices, for example, which affect spending on the remaining categories, including tech.”
The overarching impact of the events in Japan cannot be understated. A quick glimpse at Eastern-focused insider site DigiTimes provides numerous examples of just how widespread the damage is.
On a more positive note, the CEA claims that confidence in technology - despite the continuously slipping confidence consumers hold in the overall economy - is on the rise. But even that comes with a caveat: the statistic is lower than it was last year.
“Many retailers are still waiting for new product lines to be released, which is happening a few weeks later than it did last spring,” explained DuBravac. “While several new and innovative products hit store shelves this month, the full breadth of new model resets has yet to happen.”
Considering the long lines for the iPad 2 earlier this month, it's safe to say that consumers are indeed interested in new technology, even as broad economic fears temper that interest and less spending cash relegates whiz-bang new gadgets an expense few can afford.
