The Economy IS Down, P&G IS Up. It's Innovation.by
News this morning is of a weakening economy in the first quarter of 08, with final sales off 0.2%, the first drop since the first quarter of 02. Business investment is down 4.7% and housing investment is off 26.7%
But the other news is P&G’s great earnings, with its quarterly net up 8% from a year ago. A.G. Lafley, the CEO, says that innovation allows the company to maintain margins and boost retail prices in the face of rising commodity prices. Innovation can cut costs as well as offer something new and different to consumers who may be willing to pay a bit for products, even in tough times.