Economy Shrinks Faster Than Expected in 1st Quarter

Recession isn't over as far as consumers are concerned

(NEWSER) - If the recession is indeed waning, nobody told consumers. Retailers of every kind reported lousy sales for the quarter ended Aug. 1, the Wall Street Journal reports. Target’s same-store sales fell 6.2%, Home Depot’s dropped 9.1% and Saks’ plummeted a whopping 15.5%. And with unemployment, stagnant wages, and tight credit squeezing shoppers, executives don’t expect to see improvement until next spring. More»

(AP) - The economy is finally beginning to show signs of stabilizing in some parts of the US, bolstering hopes of a broader-based recovery this year. A Federal Reserve snapshot of economic conditions issued today finds that most of the Fed's 12 regions indicated either that "the pace of decline has moderated" or "that activity has begun to stabilize, albeit at a low level." The improved assessment raises hope that the recession, which started in December 2007, is drawing to a close. More»

Many shell out to ensure favorite businesses survive

(NEWSER) - Charitable contributions are down in a tough economy—but that may not mean people are feeling less philanthropic. Feeling too guilty to let the masseuse go under or a favorite shop die, many who can afford it are spending in an effort to help those around them, the Wall Street Journal reports. “It’s the guilt economy,” says one such consumer. More»

(NEWSER) - Retailers are fighting to survive in 2009, some more successfully than others. Some 73,000 stores could close their doors by year’s end. Forbes breaks down which chains are shrinking the fastest:

• Ann Taylor: Catering to working women isn’t so great when unemployment’s at 8.1%. Expected sales drop: 17.3%
• Saks: November’s 70%-off sale didn’t help, and it’s already been forced to lay off 1100. Expected sales drop: 26.2%

But experts don't expect boost to last

(AP) - Consumer spending rose in January after falling for a record 6 consecutive months, pushed higher by purchases of food and other non-durable items. But the increase is expected to be fleeting given the problems facing the US economy. Spending rose 0.6% in January, better than the 0.4% gain economists expected, the Commerce Department said today. More»