Consumer spending reaches new lows pulling the economy into deeper recession.
Wired PR News.com – Consumer spending has continued to drop as the economy digs deeper into financial distress. As reported by the Associated Press (AP), consumer spending reached unprecedented levels in December with six consecutive declines as companies continue to announce mass layoffs.
Consumer spending is deemed a key economic growth factor, however with so many households choosing to save rather than spend their money, it has become more difficult to predict when the economy will begin to see sure signs of recovery. Nigel Gault, an economist with HIS Global Insight, is quoted in the report as stating, “It is going to be hard to get the economy going again…We are very much reliant on whatever help the government can provide through the stimulus package and through the efforts of the Federal Reserve and the Treasury Department to help the financial system.”