Financial and Business News

Customer spendings in 7 years bottom

In October consumer spending in the U.S. fell the most serious of rolling over in 2001 - suggest new data published by the Ministry of Commerce in Washington today. The decrease in purchases of households with 1 percent in October, after 0.3 percent decline in September was a signal that the economy entered a deep recession, commented Blumberg agency.
In another report from the same ministry indicate that in October declined and business investment. Analysts are already talking about the biggest decline in consumption of 30 years. Negative trend in sales is likely to be maintained after property prices continue to fall and unemployment rose.
Collapsing demand is why economists at the Federal Reserve, the Finance Ministry and the team elected president Barak Obama to prepare plans for mitigating the impact of the credit crisis on households. The data show that last week received 529 thousand applications for receiving unemployment insurance, which is a decrease of 543,000 applications weeks earlier, but the levels are close to historical high values of 1992.
The forecasts of economists was that consumer spending will actually shrink by 1 percent. All in today's information is that wages have increased by 0.3% in October, after 0.1 percent growth in September. Simultaneously, inflation fell by 0.6 percent on a monthly basis, on an annual basis was 3.2 percent.

Labels: Financial News

posted by Zoritza Petrova @ 1:15 PM