Economic Recovery Losing Ground?

Three recent pieces of news about the economy spell trouble, The Washington Post reports. New home sales dropped 11.2 percent from December, meaning sales are at their lowest level in 50 years. Consumer confidence is also plunging: It hit its lowest point since the 1983 recession in February. Finally, jobless claims rocketed up 22,000 during the previous week, though analysts expected them to drop by about that number. Americans will have to “spend their way to a recovery,” says the Post, but with high unemployment that seems unlikely. The only ray of sunshine? Inflation remains low, which will keep prices down.