If the economy is growing, why are sales down?
Consumers are cutting back or barely staying even. But corporate profits (earnings) are high. How is this possible? Cost-cutting. How? They are not hiring.
Cost-cutting is a good thing, as long as you are not the source of the savings. With unemployment over 11 million, cost-cutting is not good news.
The likelihood of a major reduction in unemployment is low. Consumers are staying tight with their wallets. Businesses are staying tight with their job offers.
The rate of U.S. economic growth is expected to slow for the rest of the year.