Consumers, indebted and hobbled by tight credit, cannot help much.
Mr. MIKE MITTERNIGHT (Owner, Factory Service Agency Inc.): In days gone by, before there was such tight credit, most of the major manufacturers and suppliers would work with us and allow us a 45- to 60-day turnaround time to make those payments.
The main complaint was not the U.S. and European economies, but about taxes and fees charged by local governments, regional protectionism and tight credit, said Fan Gang, director of the National Economics Research Institute at the China Reform Foundation, which compiled the data.
The big drop was defined by auto sales, which fell as the tight credit conditions made it especially difficult to obtain a car loan.
He said during the real-estate boom, sales were driven up by "artful credit conditions, but now with tight credit, "prices are more real.
"Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth and tight credit, " said the Federal Reserve in its assessment Wednesday.
The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008.
While household spending has picked up recently, it remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.
The FOMC notes that household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.
In its statement the Fed said the economic recovery has slowed again since its last meeting in August, noting that consumer spending remains constrained by high unemployment, modest income growth, lower home prices, and still tight credit.
FORBES: Wall Street's Silly Attempt To Spin The FOMC Statement As Positive!
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