"Strong evidence is emerging that consumer spending, a bulwark against recession over the last year even as energy prices surged and the housing market sputtered, has begun to slow sharply at every level of the American economy, from the working class to the wealthy. The abrupt pullback raises the possibility that the country may be experiencing a rare decline in personal consumption, not just a slower rate of growth. Americans Cut Back Sharply on Spending"Such a decline would be the first since 1991, and it would almost certainly push the entire economy into a recession in the middle of an election year." Down at Penney's; down at Macy's; down at Kohl's; down at Target. Even Sears. Bloomberg (01.14.08):
"Sears Holdings Corp., the retailer run by investor Edward Lampert, fell the most in more than six weeks after forecasting profit that will trail analysts' estimates following a drop in holiday sales." Sears Stock Falls on Holiday Sales Drop, DowngradesNot looking too good for '08, either. Better cut them taxes again, huh.