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Since Americans are willing to spend heavily on imported goods, there’s no need for companies to cut prices | Supply & Demand-Chain Executive

NEW YORK (AP) — Americans hoping to save on European goods thanks to a falling euro shouldn’t rush to uncork that bottle of French Bordeaux. There’s very little to celebrate.

Not since September 2003 has the euro traded this low against the dollar. Still, German sports cars, Belgian beers and the latest fashions out of Italy aren’t going on sale anytime soon. The reason? There’s simply too much demand in the U.S. for any markdowns.

“The U.S. economy is the one that’s doing well in the world right now,” notes IHS senior principal economist George Magliano. “We’ve got a lot of growth in upper-income families and households.”

Since Americans are willing — and able — to spend heavily on imported goods, there’s no need for companies to cut prices. Any savings thanks to the euro’s decline will instead be pocketed by manufacturers and distributors.

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Since Americans are willing to spend heavily on imported goods, there’s no need for companies to cut prices.

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