Less spending by Americans could slow recovery (”Hope and Change” Fading Away?)
Americans are pulling back on their spending, a trend that could slow the economic recovery if it continues.A sharp drop in retail sales points to still-wary shoppers and could lead economists to curtail their expectations for growth.
Analysts cautioned against overreacting to Friday’s Commerce Department report. It could signal a return to modest growth after two unusually strong months fueled by tax refunds, rebates for energy-efficient appliances and higher gas prices.
The 1.2 percent plunge in retail sales was the largest drop in eight months. But excluding three of the most volatile sectors — autos, building materials and gasoline station sales — retail sales actually rose one-tenth of a percentage point in May.
Read the whole story at Yahoo News
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These people have it all wrong. It’s not that shoppers in general are wary, even though I believe some are.
The problem is that most people DON’T HAVE extra funds to spend. Some people are unemployed. Those that aren’t have had salaries slashed. Every anniversary of my employment, I’m supposed to get a raise, but have not had one in 3 years. Bills keep going up, food bill keeps going up, but my salary does not. I was laid off for 2 months, and now back to work for 1 1/2, but still trying to get caught up.