Tags: US | Recession | Last | Years

Retail Expert: 80% of Consumers Fear US Recession Will Last Three More Years

Friday, 20 Jul 2012 12:29 PM

The U.S. economy remains mired in a recession that will last another three years, said Wendy Liebmann, CEO and Chief Shopper of WSL/Strategic Retail, a consultancy.

Eight out of 10 Americans told Liebmann in a survey they "think the recession will last another three or more years," she told Yahoo News.

Americans have been on a "tremendous rollercoaster" and remain concerned about the job and housing markets, Liebmann said.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

The recession officially ended in 2009 though many say economy continues to contract or is bumping along a bottom.

U.S. retail sales dropped by a seasonally adjusted 0.5 percent in June, the Commerce Department reported recently, far worse than market predictions for a 0.2 percent increase.

June's decline marked the first time retail sales had dropped for three consecutive months since 2008.

"Evidence is increasingly clear that the U.S. economy is slowing," said Jim Baird, an investment strategist at Plante Moran Financial Advisors in Kalamazoo, Michigan, Reuters reports.

Consumer spending drives about 70 percent of the U.S. economy, and sagging retail sales don't bode well for the economy.

"This is another example of how broader economic uncertainty is having an impact on economic activity," said Eric Fine, managing director of Van Eck G-175 strategies in New York, Reuters added.

Federal Reserve officials have said they may favor stimulating the economy if it continues to show signs of heading south.

Many economists have said the Fed may roll out a new round of bond buybacks from banks, a monetary policy tool known as quantitative easing that injects the economy full of liquidity, weakening the dollar and sending stocks rising in the process.

"If recent weak economic data persist and cause my outlook for economic growth and inflation to become weaker than I currently anticipate, additional policy actions could be warranted," Pianalto said, according to a copy of a speech she delivered to the Economic Research Institute of Erie posted on the bank's site.

“My outlook is subject to considerable uncertainty, since any number of better or worse scenarios could actually materialize,” Pianalto added.

“There is no substitute for constantly assessing incoming information, updating forecasts, and evaluating the costs and benefits of our policy options.”

Pianalto holds a vote on the Federal Open Market Committee (FOMC), the Fed's interest-rate body.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.


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2012-29-20
 

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