Slowdown in the Services sector
Posted by Stephen Cline on July 7th, 2010The service industry of America has seen a very little expansion in the last few months and is showing the signs of the ending of the recovery process even before the real signs of recovery can be seen. The second half of the year was being seen as the time when the economy will take off, but now it seems like only the opposite is going to happen and economists are urging the government to take stiff action.
Many huge distribution chains like Wal-mart, bed bath and beyond are worried with the monthly sales figures an fear that if the number of jobs do not increase soon, then the economy is going in to a downward spiral. From the reports from the employment department, it seems that the number of people hired is very little and the number of people fired in almost equal to the number of people hired. This loss of inertia is seen as a step backwards by many republicans and economists and demand for higher number of hiring In the private sector. All this along with the slowdown in housing, the European economic crisis and the attempt by china to slowdown its economy, rings alarms of the comeback of recession.
Tags: Business, Government, Recession