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So what effect does all of this doomsday economic news have on the spending habits of ordinary people? The best way to answer it is to look at what Utahns are and are not spending their money on.
Ken Mullins said, "For the most part, we're reigning everything in."
Jennifer Hawkins said, "[I'm] trying to save where I can."
Lynda Larsen told us, "I think I'm being more conscious of the things that I'm doing."
Utahns like those we spoke with today are cutting back. Economist Andre Baksh says the proof is in the not-yet-released quarterly data on taxable sales. Those sales numbers reflect what Utahns are and are not buying.
"We're seeing declines in the retail sector as well, particularly amusement and recreation. We're seeing a drop-off in new automobiles. Car lots are suffering," Baksh said.
The latest numbers obtained by Eyewitness News show some car lots are indeed suffering. Sales are down more than 11 percent from the second quarter of this year to last. And if the numbers are right, Utahns are staying in instead of going out to the movies or concerts.
Taxable amusement and recreation spending is also down, just over 11.5 percent. "These are sort of optional spending, I hate to say frivolous, but they are not necessary," Baksh said.
Ironically, restaurant spending hasn't taken a dive. Taxable sales on eating and drinking have jumped 2 percent. "As the year goes by, it wouldn't surprise me if all of these things go south," Baksh said.
Those we spoke with weren't quite ready to slash their dining out dollars but would if pushed to that point. "That part hasn't changed, but it's getting to that point," Larsen said.
Hawkins said, "When you are young, you like to keep up your habits of going out and those things. We'll see. If it gets worse, I'm sure we'll make some changes."
Baksh couples the drop-off in retail sales with not just the bad economy but also high gas prices because people have to drive to the stores.
The latest taxable sales numbers for the second quarter of this year will be released tomorrow. You can find them on the Utah Tax Commission's Web site. Just follow the link to the right.
E-mail: lprichard@ksl.com
