The largest total expenditures occurred in food and

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Unformatted text preview: andise and motor vehicle and parts stores each accounted for about 18% of total retail sales. Sales volume rebounded from the Great Recession and posted a 6.8% increase in 2010. Sales through the first half of 2011 show similar growth, although roughly a percentage point of this gain is due to higher gas prices. Sales in current dollars are still below levels reached in 2007. If adjusted for inflation, sales are lower than any of the years since 2004. Consumer spending slowed in the first half of 2011 as households confronted high debt levels, slow wage growth, fears of unemployment, and rising food and gas prices. Uncertainty and falling home prices led many households to apply any discretionary funds to paying down existing loans. For the nation, outstanding household debt, comprised of mortgage debt and consumer debt, fell by 4.5% from mid-2008 through mid-2011, either through payment or default. The sluggish housing market continues to be an impediment to any resurgence in consumer spending. The home is the major asset in most famili...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.

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