Wednesday, April 2, 2014

US recession effects on economy and consumers

A U.S. recession would halt the housing recovery, which is already on shaky ground, as pending sales, housing starts and mortgage applications for refinancing decline. And a housing slump would spread to many other sectors, including home furnishings and autos.

The retrenchment by consumers -- which is already evident in the weak retail sales data of recent months and the lackluster holiday shopping season -- would accelerate, hurting appliance and automakers, the airline industry and other consumer discretionary spending products. Consumer lenders also would be hit as borrowers withdrew or repaid debts and delinquencies increased.