There are more ominous signs for a dreary holiday season in 2008. Sources within the Christmas light industry say that shipments of new-technology Christmas LED lights are down in the months of June and July, bucking the trend of a surging upswing over the past 18 months in the category.

Some speculate that previous hot demand is the reason for the sudden decline. Because so many ordered so heavily in 2007 they ordered early for 2008, causing summer shipments to be lighter as a result.

But others are saying it is a sign of the economic times: retailers are pulling back because they anticipate not as many end-user consumers will be buying or lighting up their properties for Christmas 2008 due to rising energy costs and overall inflation.

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