MEDIA RESOURCES

DALLAS, Texas (SMU) - The nation is in an economic slowdown, consumer confidence is at a nine-year low, and October's unemployment rate increased to 5.7 percent compared to 5.6 the month previous. Some may wonder if the economy will have an impact on the holidays this year, but according to Professor Mike Davis at SMU's Cox School of Business, the real question may be whether the holidays will have an impact on the economy.

"If the latest consumer confidence numbers mean that consumers won't be spending, a full recovery will be sometime in coming," Davis said. "Businesses are having the same problem as everyone else in figuring out this economy. It's the classic economic analysis: 'On the one hand this, but on the other hand that.' Some indicators aren't so good, especially the latest consumer confidence numbers, while others, such as worker productivity, suggest that the economy is set for a stronger rebound than we've seen so far. Retail businesses have to decide whether to stock up in anticipation of a strong holiday season. Other businesses, especially in the technology sectors, have to decide whether to make big capital expenditures in order to be ready for the upturn.

Mike Davis is a lecturer in economics and finance at the Cox School. Professor Davis specializes in areas concerning the economy and the economic effects on industry. He teaches a wide range of business courses including Applied Managerial Economics, Law and Economics, Government and Business, Microeconomic Theory, Money and Banking, and Industrial Organization. Professor Davis can be reached at 214-768-2632 or mldavis@mail.cox.smu.edu. His vita may be found at http://www.cox.smu.edu/academic/professor.do/mdavis.