During fiscal 2006, we expect the retail market to remain extremely competitive and tighter consumer spending to continue for at least the first half.

The outlook for the group remains strong although the retail market is expected to remain highly competitive as consumer spending continues to be tighter this year,

The auto insurance market is extremely competitive, and we're constantly reviewing our rates to remain a top player in the state. While Dimensions is already a huge success, we're thrilled to be offering it at even lower prices. This will certainly give our 117 personal lines agents in Indiana one more reason to quote The Hartford.

If gas prices go up, the consumer is going to be a little tighter than they were.

Although we expect consumer spending to slow sharply in the fourth quarter, to below 2 percent, as a result of lower auto sales, we expect that GDP will still edge back above 4 percent on an inventory rebound, higher business spending, and hurricane recovery spending.

The recovery in consumer spending is in its infancy. Retail growth in real terms has been the weakest in 12 years and is just picking itself up from the bottom. The car market is still weak, with seasonally adjusted sales falling 2 per cent in March after a 2 per cent fall in February.