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Realistbear

Latest Data From U S Points To Recession Being Realised

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http://news.bbc.co.uk/1/hi/business/5180900.stm

ast Updated: Friday, 14 July 2006, 14:55 GMT 15:55 UK

The outlook for US consumer spending is less than rosy.

A slump in sales of new cars saw US retail sales fall 0.1% in June, according to government figures.
The Commerce Department data surprised analysts who had expected a 0.4% climb in month-on-month sales.
However, when sales from the volatile auto sector were stripped out, sales actually rose 0.3%.
Surging fuel costs, as a result of global oil prices, and worries about interest rate rises have seen shoppers being more cautious with their cash.
The figure was an indication that petrol prices were "beginning to bite and beginning to squeeze customers pretty hard", said economist Nariman Behravesh of Global Insight.
Consumer spending accounts for about two-thirds of U.S. economic activity but there is concern that higher energy bills will hit households and lead to further cutbacks in discretionary spending in the shops.

With their tanking house prices, rising IR and oil surging it is little wonder that a recession was coming. No doubt Ben is trying to contain it to a short, sharp, dose of reality to reign in the HPI-MEW plague that has ravaged the country for the past 5 years. Good thing we have the oppsotie with surging house prices, falling IR (in real terms against the world trend) and surging oil from which we make a profit due to our status as an oil exporter. Hang on.................... :blink:

OOps missed this bit of spin at the end of the BBC article:

However, it was not all bad news - with consumers still spending about 5.9% more than they had in June 2005.

No wonder the country is in the debt mess that it is. Good news? Fools. :lol:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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