Changing demographics may spell trouble

Business Week reports in its Feb. 13 edition that the changing demographics of the U.S. population may adversely impact car and truck sales in the years ahead. Citing a Federal Reserve Bank of Chicago study, BW says that between 1970 and 1992 more than 32 million households were formed, but that the share of married couples shrank to 53% from 77%. "At the same time, the shares of one-parent and single-person households jumped 16% and 31%, respectively," the magazine reports, adding that "these changes spell increasing income inequality." What does all of this mean? The study shows single parents' spending was only 29% that of married folks in 1992, and that outlays by single persons were running at 56% of those of the married group. This "startling growth of non-traditional households," says BW, portends an "adverse impact on purchases of big-ticket items like cars."