Hopes of seeing the end to the recession were crushed on Tuesday at the U.S. retail sales saw an unexpected drop of 1.1 percent in March compared to the previous month, the Commerce Department said.
The results sent out the grim news indicating the economy still remains a victim to recession following an unexpected drop in sales of just about everything from cars to clothes.
That cautionary guidance was seconded by President Barack Obama and Federal Reserve Chairman Ben Bernanke, though they had encouraging words as well. Bernanke spoke of tentative signs that at least the economy is declining more slowly, and Obama repeated his recent analysis that he sees glimmers of hope.
Many Americans are still faced with job losses and many could cut back on their spending which could plunge the economy deeper.
In the past few weeks there have been improvements in various economic reports, including in the home and auto sales, raising optimism that the economic downward trend may be dropping.
These improvements were cited by both Obama and Bernanke in separate speeches on Tuesday. They also cautioned that the economy is not immune to the possible dangers that lie ahead.
By no means are we out of the woods just yet, Obama warned in a speech at Georgetown University, the Associated Press reported.
The severity of this recession will cause more job loss, more foreclosures and more pain before it ends. Credit is still not flowing nearly as easily as it should”, the paper reported.