July 14, 2007

The Unpredictable Economy

Retail sales declined 0.9% during the month of June the worse fall in two years. According to the commerce Department the reduction was caused by a decline in car and gasoline sales.

On the other hand Consumer Confidence went up registering 92.4 points probably due to the good performance of the Stock Market, the index reached its highest point since January.

Although the economic signs are relatively good our economy as a whole is not as healthy as it should be, if we consider the excessive dollar weakness in relation to the Euro and the recent increase in the Commercial Deficit we find deep structural problems that need a great deal of work, if we first find the solution of course.