In the business sector, fixed investment plummeted late last year and early this year as current and expected sales tumbled – the typical accelerator effect – and credit conditions tightened. Lately, however, real spending on equipment and software appears to be stabilizing. The improvement is particularly visible for business purchases of cars and trucks.
Instead, the low participation rate reflects pronounced declines in participation rates for a number of demographic groups, most notably teenagers and young adults, as well as individuals between the ages of 25 and 44.