May 2, 2008 6:02 pm US/Eastern
CBS4 Your Money: Outlook On Economy Weakens
MIAMI (CBS4) ―
This week was a relatively good one for the nation's economy. The Dow Jones Industrial Average soared above 1300 for the first time in months. The dreaded "R" word - recession - was avoided once again, and to top it all off unemployment numbers came out Friday that were better than expected.
CBS4's Consumer Investigator Al Sunshine said from Wall Street to Main Street everyone asked the big question: is the recession finally here?
On Monday, oil prices hit $120 a barrel with concerns about world tensions.
On Tuesday, a study showed consumer confidence plummeting to the lowest level in five years. The culprits included the high cost for gas, food, and worries about possible layoffs.
On Wednesday, Washington was in the spotlight as the Fed cut interest rates another quarter-percent.
For the first quarter of 2008, Uncle Sam made it official; the economy inched forward during the first quarter of 2008, growing at just 6/10 of a percent. CBS4's Al Sunshine said that may be tiny, but it's enough to say we're "not" in a recession yet.
On Thursday, the government said consumer spending went up last month: good news. The bad news: most of that additional spending went to cover the soaring cost of gas and food.
On Friday, the April employment report pegged the jobless rate at 5 percent, slightly better than expected, but the fourth straight month that pink slips outnumbered new jobs.
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