In a recent recent blog post titled, “I Repeat: It’s Not Just A “Wall Street Bailout”

Brian Sullivan of Fox Business reminded readers that the housing crisis is not an island to itself, and explained that there are a number of industries that all benefit from home transactions. Sageworks data agrees, and shows that industries related to home building and housing have all been adversely affected by the crisis.

When Sageworks, Inc.’s data was mined for those privately held industries with the slowest sales growth over the last 12 months, it confirmed that a number of housing related industries such as furniture stores, lumber wholesalers, and building materials companies now rank among industries reporting the slowest sales growth in the US over the last 12 months.

Those Industries listed in the top 10th percentile for the slowest sales growth over the last 12 months includes the following:

Brian Sullivan also explained that consumer spending was 70% of the economy, and much of that was related to housing. Historically, the ability to borrow and spend has tracked closely with real estate prices. With that in mind, watch retail spending and especially the auto industry (see previous post), where the consumers ability to borrow is directly related to auto sales.

Companies such as newspapers, news websites and social networking sites dependent on advertising dollars to make money may see a particular slow down as businesses cut unnecessary expenditures for fear of continued economic woes.  Sageworks Database of private company activity shows a downward trend in advertising dollars spent as a percent of sales from 2007 to 2008 for automobile dealers, restaurants and retail clothing stores.

In light of this trend Brian Hamilton, CEO of Sageworks, remarked, “when companies feel threatened in an uncertain economic environment, they tend to cut discretionary expenses, one of which is advertising.  Unfortunately, this tends to further depress sales and profits, since good advertising efforts drive profits and sales.”

The downward trend in advertising which is presumably due to tightened spending by businesses is similar to the downward trend being felt by retail stores due to tightened discretionary spending by consumers (see “Small and Large Retail Businesses Feel the Downturn“).

See also: http://www.adotas.com/2008/09/report-display-down-6-year-over-year/ - On online advertising trends in 2008.