WASHINGTON — The recession is easing? Not so fast. An unexpected drop in sales of just about everything from cars to clothes sent a sobering message Tuesday: The economy is still vulnerable.
That caution was seconded by President Barack Obama and Federal Reserve Chairman Ben Bernanke, who had encouraging words as well. Bernanke spoke of “tentative signs” that at least the economy is declining more slowly, and Obama repeated his recent analysis that he sees “glimmers of hope.” With Americans still losing jobs by the thousands, a fear is that people will cut back even more on spending, and that could plunge the economy into a sharper tailspin.
Tuesday’s report that retail sales fell 1.1 percent in March deepened concern.
Improvements in a string of other economic reports over the past weeks — including home and auto sales and home building — had raised optimism that the economy’s descent might be slowing.
“By no means are we out of the woods just yet,” Obama said in a speech at Georgetown University. “The severity of this recession will cause more job loss, more foreclosures and more pain before it ends. Credit is still not flowing nearly as easily as it should.” The Associated Press
