Economy

Bleak sales are another reality check for economy

Retail sales bleak for July, reinforcing fears consumers won't spend the economy to recovery

WASHINGTON (AP) -- A bleak report on retail sales Thursday reinforced a nagging worry of economists: Shoppers won't spend enough to help a recovery take hold.The figures served as a reality check for an economy that lately has appeared poised to emerge from recession and grow again. Consumer spending powers about 70 percent of economic activity.The Cash for Clunkers rebate program helped give auto sales to their biggest jump in six months in July, but sales sank elsewhere. Gas stations, department stores, electronics outlets and furniture stores all suffered.Overall, sales fell 0.1 percent, the Commerce Department said, after two months of modest gains. Economists had expected a 0.7 percent increase. Excluding autos, sales fell 0.6 percent, also much worse than predicted.Unemployment, flat wages, tighter credit, fear of layoffs and to urge to save more have caused many consumers to spend less. Shrinking home equity and stock portfolios have compounded the problem. Auto inventories tight, U.S. "clunker" interest slips

WASHINGTON (Reuters) - Red hot auto sales under the U.S. government's "cash for clunkers" incentive began to cool as dealer inventories tightened and showroom traffic showed signs of leveling off from its frantic pace of a week ago.

Kliphnote:

Some may say "but see how long it took Reagan's tax cuts to work"

Reagan's tax cuts were implemented over three years.

That's why it took that long.

He should have had all the tax cuts in one year.

I hope the economy gets better, soon.

And I was no fan of Reagan.

BTW----where is my tax cut?