Depression In The Industry?

I have heard very mixed results about how the fly fishing retailers are doing. Some are singing songs of doom with cutbacks in production and marketing with slumping sales. Some companies have cut staff hours and are beginning layoffs. The same is happening with some magazines. Others say business is strong. Who knows exactly what is going on? My impression is that customers are buying less expensive items and foregoing the $900 reel or the high end rod.