Decline in consumer spending

The Issue: U.S. mainland consumers limit spending, including clothing, as we head into holiday season.

Our View: The implication is less purchase of NMI apparel products, warranting serious review.

Local leadership must buckle down to begin reading economic trends (specifically, decline in consumer spending) across the country, including nearby Japan.

This is vitally important in terms of preparation for the ripple effects of the decline in consumer spending. Believe or not, it eventually lands on our shores. Right now, decline in consumer spending would adversely affect the NMI’s apparel sector.

The net effect of less purchases of apparel products from the NMI would translate into less revenue accruing to the local coffers. If this phenomenon begins to adversely affect the local apparel industry, it means direct and residual benefits from this sector would decline considerably. It would affect the general welfare of most businesses here, therefore, the local economy.

It could even adversely affect local jobs, specifically, non-garment jobs where many of our people work or get to bring home the bacon, so to speak.

The apparel sector is the only sturdy contributor to local revenues these days, tourism having suffered major plunge over the last three to four years. While we wish to be optimistic about an economic rebound in Japan, the reality of this issue is far from the hopeful tidings that we have read about in recent months. Bankruptcies continue to plague major and small businesses in the Land of the Rising Sun. It’s an indicator that Japan is far from an economic rebound. Therefore, we can reasonably expect that its frugal consumers won’t venture into spending sprees. Thus, a protracted recovery in the local tourism industry here can reasonably be expected.

We strongly urge local leadership to constantly review decline in consumer spending across the country and in Japan to get a clear reading of where we may be headed when maters turn for the worse. At the same time, it would be responsible to see where we can offer some breaks to the apparel industry here in order to mitigate the effects of less purchases from buyers. Either this is done or most factories here would close shop and join the Luggage Squad. Please take heed, today! Si Yuus Maase`!