Major Companies Believe a Rebound Cometh

Fall twice as far as anticipated

(NEWSER) - Retail sales fell more than twice as much as analysts predicted in December, thanks to mounting job losses and reduced credit, Bloomberg reports. Sales fell 2.7%, extending the longest string of declines on record to 6 consecutive months. Purchases excluding automobiles slid 3.1%. “Consumers are pulling back,” said one economist. “The first half is going to be bleak in terms of consumer spending and economic activity.” More»

Employers may have shed 75,000 posts

(NEWSER) - Stocks fell in Europe and Asia today, marking the worst weekly slump in 6 years, according to the MSCI World Index. Markets were depressed by grim news expected in the latest US employment report due out this morning, reports Bloomberg. Economists predict figures will show a US loss of 75,000 jobs last month—the worst drop in almost 5 years. "The labor market pretty much hit the skids in August,'' said an analyst. More»

Store closings rise along with gas prices, foreclosures

(NEWSER) - Soaring gas prices and a still-boiling housing crisis are taking their toll on America's smaller retailers, with store bankruptcies and vacancy rates rising steadily as customers avoid impulse-buys that once fueled the industry's rapid expansion, reports AP. Vacancies hover between 7% and 8%, up from 5% just six months ago—and some analysts predict rates as high as 12.5% by the end of 2008. More»

(NEWSER) - November’s retail sales confounded doomsayers, surging 1.2%, twice the 0.6% analysts predicted, Bloomberg reports. Many had worried that consumer spending would take a hit as gas rose and housing fell, but now it looks like job and income growth could cushion the fall. “The numbers should help put to rest some of the fears of sliding into recession,” said one economist. More»

Firms come out streamlined; still slow to hire

(NEWSER) - For some of America's biggest companies, the recession amounted to growing pains: They're now "leaner, meaner, and hungrier," says one economist. Indeed, sales, profits, and employment among S&P 500 companies last year beat figures from 2007—before the crisis began, the Wall Street Journal notes in an extensive analysis. Careful planning and cost cutting have allowed these companies to beat out the rest of the economy, helping put the Dow Jones Industrial Average at its highest in four years. More»