The economy still show little inflation during September, but consumers provided a glimmer of hope for the retail sector.
The Labor Department said that excluding volatile energy and food prices, the core index was flat in September, the same as in August. And it had been running at 0.9 percent for five consecutive months, its lowest level in more than 50 years. Economists suggest that growth would remain slow for the rest of the year, given the slowdown in jobs and output. The bottom line for the recovery still remains pinned on job growth, but it is not easy. What is more, the trade deficit widened to 46.3 billion in August, which will be a drag on growth.
Separately, according to Reuters, consumer sentiment in the US declined in early October to its weakest level since July. On October 15th, new statistics for retail sales provided a growth for consumer spending, which is a cornerstone of economic growth. This upward revision to the retail sales does offer a glimmer of hope.
The only concern I have about this piece of news is that inflation is more than just being "tamed" but in fact staying too low. It appears that more another monetary stimulus packet is needed and still, more Americans have not found jobs yet. I understand that there are different set of ideas regarding one matter but in this case, shouldn't inflation a little bit higher?
ReplyDelete