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Why did spending plunge?
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When the credit bubble burst, consumers retrenched and their spending plunged.
Consumer spending plunged during the recession and has languished around its level in mid-2005.
In nominal terms, IT spending plunged by 13%, because prices of computers and the like fell sharply.
But retail analysts say spending has stabilized since late last year, when consumer spending plunged as the financial crisis broke out.
How would they feel if overly-hasty cuts in public spending plunged the economy back into recession?
The big worry is that consumers will keep on reducing spending, plunging the economy into a recession.
Such spending plunged 14.6percentt in the second quarter, slowing overall economic growth to the most sluggish pace in eight years, a mere 0.2percentt annual rate.
Consumer spending plunged in the third quarter of this year, and the evidence so far suggests they may pull back even more in the fourth quarter.
With private spending plunging as the housing bubble popped and cash-strapped families cut back, the willingness of the government to keep spending was one of the main reasons we didn't experience a full replay of the Great Depression.
As advertiser spending plunges week by week, the likelihood grows that Clear Channel will fall out of compliance with one of its loan covenants by year's end and be in technical default, several analysts said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com