Personal care category bucks US consumer goods trend
The drop in consumer goods prices was the biggest fall since the Department of Labor started publishing the figures in February 1947 and underlines the gravity of the current economic situation.
The figure was well ahead of that recorded in October, when consumer prices fell by 1 percent and ahead of financial analysts' expectations, who, on average, had estimated that prices would fall by 1.3 percent in November.
Personal care looks resilient
However, a closer look at the figures also emphasizes just how resilient the personal care segment is, as consumer prices for this category remained level, having shown a 0.2 percent price increase during the month of October.
Either way, across the board, the latest figures do show an about turn for consumer goods industries as a whole, as the marked increases of the past year have now levelled.
High energy prices have had a significant knock on effect on pricing for consumer goods, leading to a 17 year high in July of this year.
Last three months sees price trends reverse
However, in the past three months, there has been a reversal of these increases, as the cost of oil has plummeted and the virtual collapse of global financial markets has had a knock on effect on retail markets.
As the pressure of costs has been relieved, this has given all consumer goods makers room to discount their products further; discounting that has become a necessity as brand-makers rush to carve out their share in a rapidly diminishing consumer spend.
The fall in consumer spend in recent months has been precipitous as credit availability shrinks, job losses increase and consumer confidence wanes.
Indeed, recent data from a Conference Board study shows consumer confidence to be at an all-time low.
Although the figures for the personal care category have faired better than others, including food, apparel and transportation, the trend is still downwards and with the current economic clouds looking ever-more turbulent, it seems that even the hardy personal care category is in for a tough ride.
