Economy slamming on the brakes in June!!!!!
The company said demand "slowed unexpectedly" in June after distributors cut down inventory levels and "did not replenish them late in the quarter," the company said in a release. TI also cited a sales decline for its wireless business in the quarter.
“Fallout from a weaker U.S. economy accelerated during June with consumer confidence dropping, unemployment rates moving sharply higher and home prices declining at the fastest rate in decades,” said Kenneth I. Chenault, chairman and chief executive officer. “Consumer spending slowed during the latter part of the quarter and credit indicators deteriorated beyond our expectations.
We saw in an earlier post the State of Georgia's tax revenues plummeted in June.
A sharp slowing in June is consistent with my personal interviews with business owners and accountants. Further, if we are dealing with a credit contraction.....July will likely be worse than June.
We have now entered the shut down period. Expect to hear about a lot of businesses shutting down over the next few weeks and months. We just heard today that Mervyn's might be shuttering over 170 stores and Wachovia exiting the wholesale lending business. Tonight, Royal Carribean said it was laying off 400 dockside workers.
A little birdie tells me that one or two major national restaurant chains might be filing for BK in the next few weeks. Also, another regional airline carrier might be on the ropes.
Again folks, none of this is any fun, as investors and Americans, we better damm well know what is going on....it's good our Treasury Secretary says our financial system is sound.