People’s decisions to cut back add up to weaker economy

WASHINGTON


…The housing crisis and expensive gasoline prices are things shoppers can’t control. So, they’re taking power in other ways, “by controlling the little things … filling up the cart and putting things back at the check out,” says Candace Corlett, principal at consulting firm WSL Strategic Retail. “I’m going to put it back. They are learning restraint and that is deadly for commerce,” she says.

As people tighten belts, so are many companies. Some are cutting back on production and many are reluctant to hire. High prices for energy and other raw materials are squeezing profit margins. The more cautious behavior by people and businesses is rippling through the economy and making for weaker activity.

AP