By Erik Gruenwedel | Posted: 24 Feb 2009
Despite consumer confidence in February remaining unchanged from January, consumer expectations about technology and electronics spending continue to fall, according to new data released by the Consumer Electronics Association.
Confidence in CE and technology spending dropped nearly nine points in February to 68.4, the lowest level since the Index of Consumer Technology Expectations (ICTE) was initiated in 2007, and a 21-point decline from the prior-year period.
Shawn DuBravac, economist and director of research at CEA, said with rising unemployment and declining home prices and stocks, the incentive to purchase discretionary items, including consumer electronics, remains muted.
Overall retail sales in January actually increased 0.5%, according to the National Retail Federation.
"We are in the midst of one of the worst drops in consumer spending in the last 40 years," DuBravac said. “While consumer spending is down across the board, we are still seeing positive growth in several product categories such as digital displays, accessories and video games."