Economy Update: Recession On Hold

J.J. Jackson* | February 14, 2008 

With all the predictions of economic doom and gloom on the horizon it is important to know the facts. In January, fears of a recession have been put on hold for a month as retail sales rose “unexpectedly”.

Feb. 13 (Bloomberg) — Retail sales in the U.S. unexpectedly rose in January, easing concern that the world’s largest economy has already slipped into a recession.
The 0.3 percent increase was led by spending on autos, clothes and gasoline, the Commerce Department said today in Washington. The figure followed a 0.4 percent decrease the previous month. Purchases excluding automobiles and gasoline were unchanged.

“Today’s report will diminish recession anxieties, but it doesn’t dispel them altogether,” said Richard DeKaser, chief economist at National City Corp. in Cleveland, who accurately forecast the sales gain. Federal Reserve Bank of St. Louis President William Poole said on Feb. 11 that “the best bet” is the U.S. will avoid a recession.

Of course the reason for saying the increase was “unexpected” is because the so-called experts were wrong to begin with. So this story should report, just to be correct: “Retail sales in the U.S. unexpectedly rose in January because the “experts” really don’t know what they are talking about, easing concern that the world’s largest economy has already slipped into a recession.”


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Comments

One Response to “Economy Update: Recession On Hold”

  1. RonniesRayGun (moderator) on February 14th, 2008 7:07 am

    Certain segments of the economy are certainly struggling. Retail is one of them. But with the sub-prime housing mess, a lot of people are scared and actually paying down debt instead of purchasing new crap they don’t really need.

    That’s a good thing.

    But manufacturing is booming. We have to turn away jobs at work because we are so flushed with requests.

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