Analysts Concerned Over Holiday Weakness

2008-12-02 | 07:38

Traffic was soft over the long weekend.

Consumers looked for deals the day after Thanksgiving. According to an Associated Press report, some analysts said shoppers largely took advantage of promotions early on Black Friday but warned that spending still remains weak.

KeyBanc Capital Markets analyst Bradley B. Thomas said sales were mostly driven by promotional activity, but traffic Friday afternoon and through the weekend was softer than usual.

"Based on our post-Thanksgiving holiday weekend shopping observations, we continue to have a cautious view on the retail sector heading toward Christmas," Thomas wrote in a client note.

Meanwhile, the Institute for Supply Management, a trade group of purchasing executives, said its index of manufacturing activity fell to a 26-year low in November.

The Commerce Department also said construction spending fell by a larger-than-expected amount in October, offering more evidence that the economy remains under pressure.