While there is a noticeable increase in the number of positive economic reports, the overall outlook remains grim. Even as the decreasing price of a barrel of crude oil grabs headlines, the current economic slump is expected to continue into 2009 as the impact of tax rebates fades. Furthermore, wages are not keeping up with inflation and fell 0.8% in July after dropping 0.9% in June. Consumer prices rose in July at the fastest pace since 1991 as the cost of living increased 5.6% for the year ending in July; however, consumers are saving money on energy costs by purchasing fewer SUVs and more energy-saving washing machines. The U.S. trade deficit shrank in June, and the revised trade gap for May narrowed because of a record number of exports thanks to a weaker dollar.

[ Mon, 18 Aug 2008 12:00:00 GMT ]

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