Signals of recession getting worse

The current recession (or perhaps I should now start using the word depression more often?) is apparently getting worse. Remember that since the stock market crash in January, a lot of correction has already taken place in stock markets and investor expectations all around the globe. Hence any "worse than expected" has to be really bad. Here are three signs which I see as the recession in US and Japan getting worse. UK is on the same track.

NYT: US Housing starts plunge 19%

The construction of new homes plummeted in November by the largest amount in almost a quarter-century as builders slashed production in the face of a recessionary economy.

WSJ: US Retail Sales fall more than expected
Price-slashing failed to rescue a bleak holiday season for beleaguered retailers, as sales plunged across most categories on shrinking consumer spending, according to new data released Thursday.

BBC: Japan's Industrial output fall 8% compared to the previous month
Industrial output in Japan dropped just over 8% in November compared with the previous month, the biggest fall on record, government figures show.

Another sign of worsening recession is sharp drops in crude oil prices. Crude oil dropped over 9% on this Wednesday. The reason for the current rise in Indian stock markets, despite the picture getting grim is (perhaps) an expectation of stimulus package from the government.

Dec 26, 2008

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