Friday, June 11, 2010

Sales Plunge-- Economic Fears Increase

Fears of an economic lapse or even a double-dip recession have increased sharply as new data suggests that retail sales have fallen at a fairly fast rate at a time when the economy was thought to be rebounding. The Commerce Department is reporting that sales from the month of May have fallen a steep 1.2% compared to the year prior-- when the economy was in the middle of the recession.

The big decline cast new doubts about the strength of the economic recovery. Consumer spending accounts for 70 percent of total economic activity. Economists are concerned that households will start trimming outlays as they continued to be battered by high unemployment.

Looks like we need a better plan to fight this recession than the one the President has. Furthermore, auto sales dropped by almost two percent. We need to be very careful... this could be a bad moment, especially with the European debt crisis going on.

1 comment:

goldtracker said...

This news is certainly not good for the stability of our economy. I was tracking it with ExactPrice when this news hit the market it looked like a definite buy signal for the gold spot.