Photo: Bloomberg TV
Retail sales have been negative for three straight months. In June they fell 0.5 per cent.And Gary Shilling, told Bloomberg TV that the U.S. economy is already in a recession and that the retail sales numbers signal a recession:
“You look at retail sales there were negative for three consecutive months, April, May, June. That’s happened only 27 times there were first reported in 1947 and in 25 of the 27 it was in a recession or within three months of a recession.”
Shilling said consumer confidence is low, the employment situation has been weak, and wage increases have been weak. This recession he said is being driven by consumer retrenchment.
Watch the entire interview at Bloomberg TV: