Suddenly, US retail prices has fallen in December 2009. A huge fall in prices was recorded in sales of electrical goods and cars.( hence prices for fuel, building materials and steel fell). US Commerce Department showed that prices fell by 0.3 % compared with November. This sudden declining in price was caused by decreasing in consumption. People consumed less than over the festive season last year. Finally December sales has fallen by 6.2 % compared with last year.
For many firms this event was unexpected, since they could experience declining in their profits. Concerns over job security are expected to continue to restrict spending, with unemployment still at 10%. Many economists expect unemployment to keep rising until the middle of the year. This event was experienced also in other big countries, such as UK, Japan, China, etc. But economists are expecting a warming (improvement) in economic situation next year. "I don't think that portends a new downturn in the economy, but it does serve as a warning that the recovery is going to take some time to put in place here," commented Chris Rupkey, chief financial economist at the Bank of Tokyo-Mitsubishi in New York.
P.S.
I was really pleasant when I read (in the past) this chapter on BBC, because my headphones have just broken and I realized that I had a good opportunity to buy it (prices has declined). Unfortunately, I realized that this chapter was about US retail prices!!!!!. When I went to the shop in Oxford, I saw the same price as 3 month ago((((( 79 POUNDS ((((
Try amazon.co.uk
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