It could be a good time to buy electronics and appliances. Vivian Ma, a CIBC World Markets analyst, notes that Census Bureau data indicate retailers of these items racked up sales growth of 1.4 percent in June, the weakest monthly sales growth in more than 2 years.
”If this trend continues, it bodes negatively for Best Buy and Circuit City,” Ma said in a research note.
The news wasn’t all bad. Ma added that the 42-inch LCD television was expected to be the most popular set this holiday season.
Meanwhile, prices of LCD TVs are now comparable to those for plasma televisions, not the case compared with April 2006, when LCDs sold for more, she siad..
Average selling prices for LCD Tvs in 32-,37- and 42-inch sizes fell an average of 38 percent in June, while plasma prices declined about 29 percent, she said. “We think the rate of decline could pick up again later in the year if competition turns out to be tougher than expected,” she added.
With an outlook like that, who wants a sweater?

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