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Recession easing, but many Americans still afraid to spend
[ 2009-08-21 16:55 ]

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Japan, Germany and France have all reported renewed growth in their economies between April and June.

This is the VOA Special English Economics Report.

Stock prices took a roller-coaster ride this week -- down one day, up the next. Experts say the situation is likely to continue until investors feel more sure about signs of economic recovery.

Some investors worry that Americans are not doing enough to lift the world's largest economy out of recession. This is back-to-school season. But the National Retail Federation says school-related sales are down from last year.

MOTHER: "I don't want to spend more than twenty dollars for a backpack."

Recession easing, but many Americans still afraid to spend

Consumer spending is 70 percent of the economic activity in the United States. But consumer confidence -- a measure of trust in the economy -- fell unexpectedly this month. A lot of people feel uneasy about spending after the longest recession since World War Two.

WOMAN: "My situation is fine, but I am still aware that I could lose my job at anytime, and you know, there's still no definite security. So that's why I am paying attention more."

Jobs have continued to disappear, though at slower rates. Record numbers of Americans are in danger of losing their homes. And the days of easy credit are gone. The Treasury Department says lending fell for a fifth month at banks that received government aid.

Still, some economists say other signs in the economy show that the recession is over already, or will be soon. Then the question is: how fast or how slow will the recovery be?

The recession may also be ending in Japan. Japan has the world's second largest economy. Officials reported this week that the gross domestic product grew nine-tenths of one percent between April and June. It was the first growth in Japan's economy in 15 months.

But there are concerns that Japan and the United States could face a "double-dip" recession. That is a period of growth followed by another downturn. Japan will hold national elections on August 30th. Public opinion surveys show the main opposition party in the lead.

In Europe, reports last week showed a year of recession easing in Germany, its largest economy, and in France. Both countries had growth of three-tenths of one percent between April and June. That news raised hopes for an early recovery among the 16 countries that use the euro.

Still, the chief economist of the International Monetary Fund says the effects of the world economic crisis will hurt both supply and demand for years to come. Olivier Blanchard says even after recovery, the global economy may not produce as much as it did before the crisis.

And that's the VOA Special English Economics Report. I'm Steve Ember.

roller-coaster: a popular amusement ride developed for amusement parks and modern theme parks, a roller coaster consists of a track that rises in designed patterns, sometimes with one or more inversions (such as loops) that turn the rider briefly upside down 游樂場過山車

Related stories:

US consumer spending, pending home sales rise; incomes fall

Obama: US economy shows glimmers of hope

Confidence returning to US credit markets

Data show more bad news for US economy

(Source: VOA 英語點津編輯)

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