NAM Economist Sees Widespread Slowdown

Washington, DC, July 20, 2010--A slowdown in the recovery is very likely in the near-term, according to Dave Huether, chief economist for the National Association of Manufacturers.

He said last week's economic reports "were a sea of red. Evidence continues to mount that the economic recovery is moderating at mid-year. Of the 10 economic indicators that came out last week, five declined, four slowed and just one improved."

Huether said the developing slowdown appears to be widespread, taking place in the consumer as well as industrial sectors of the economy, noting that retail spending fell for a second consecutive month in June and a preliminary report on consumer sentiment plunged in July.

"As the fuel injected into the economy from fiscal stimulus and inventory restocking continues to erode, private-sector final demand will need to improve for the recovery to continue," he said.

"Unfortunately, last week's reports signal that underlying economic conditions are not improving."