STEVE INSKEEP, host:
NPR's business news starts with consumers giving up more gadgets.
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INSKEEP: A new study shows that consumers are reducing their purchases of TVs, digital cameras and other electronics. Sales are down most in cities with some of the worst declines in housing prices. So your mortgage becomes worthless and you decide to do without the 101-inch TV. According to the city-by-city study reported in USA Today, Sacramento, Phoenix, Tampa and Detroit had the biggest fall in electronics spending in the fourth quarter of last year compared to the previous year.
This drop in sales is not news to Circuit City. The number two electronics chain has not seen a profit in months. It is overhauling stores and cutting costs to survive the downturn and to survive competition from Best Buy and Wal-Mart, both of which say their electronic sales are doing just fine. Transcript provided by NPR, Copyright NPR.