Wednesday, February 13, 2008

Hold that Recession Thought- or Not?

Retail sales rose .3% in January, reducing concerns that the economy has already slipped into a recession. Consumer spending in the auto, clothing and gasoline sector helped boost retail sales. But before you get too excited, the report temporarily may ease your recession anxieties but the forecast still seems pretty gloomy.

According to Bloomberg, Macy's, Target and Limited said their sales at stores open more than a year declined in this past month and department store sales dropped 1.1%. Macy's responded by cutting 2,300 jobs.

Fashiontary thinks it is far from over and additional slowdowns will be seen in the next few months when inventory builds further and massive markdowns occur. Stay tuned because it ain't over yet!

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