Falling U.S. Retail Sales Spark Fears of a Weakening Economy
For the first time in 11 months, U.S. retail sales fell in May, registering a 0.2% decrease over the previous month of April. Considering that the economists predicted a drop of 0.4%, the market did not seem to be affected by the news, but overall thoughts of a weakening economy are still plaguing the minds of the U.S. citizens.
Auto sales were down 3.2%, mostly on account of a stock shortage from Japan. The earthquake from months prior continues to impact present production.
Other factors include the high prices at the pump. Since more of the family budget is going toward fuel costs, less is being spent in the retail sector.
As the spending decreases, many wonder what will become of the U.S. economy in its fragile state. Some have noted that the overall market has declined by 6% in May and there hasn't been much relief in June. The national debt continues to rise (along with the debt ceiling...) and the overall outlook appears bleak.
Is it time to get your investments out of the market? Are they about to plummet like they did in March of 2009? Many investors are predicting yes, and quite frankly, based on the above observations, I can see why.
Before the market takes its predicted dip, I will be focusing on making more money in order to fully stock up my emergency fund. If the economy gets rough again, I want to make sure I have the means necessary to weather the storm.