Flat retail sales keeps U.S. on recession watch

Growth in U.S. retail sales stalled in August after a spending battle in Congress crushed consumer sentiment, leaving the economy perched uncomfortably close to recession.

The weak data puts more pressure on the U.S. Federal Reserve to try to boost growth, while a report showing flat wholesale prices in August could support arguments within the central bank to take action.

"The slowdown in the economy is real," said Steven Ricchiuto, chief economist at Mizuho Securities in New York. "It's a broad-based slowdown, and that's pivotal."

Retail sales were unchanged last month from July, the Commerce Department said on Wednesday. The government also lowered previous estimates for growth during June and July.

Read Full Article from Reuters

- Posted: 2011-09-14 13:42:55

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