Recovery Slows Down As Stimulus Funding Expires ; More Federal Cash Urged for Economic Spark

Summary

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The U.S. economic recovery downshifted dramatically this spring as various stimulus measures enacted by Congress ended or started to wane.

The sudden softening of growth, which also coincided with the outbreak of a debt crisis in Europe, is prompting many economists to caution against withdrawing stimulus too soon, and some are even calling for another round of government action to prop up the economy for a while longer.

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Extract

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Recovery Slows Down As Stimulus Funding Expires ; More Federal Cash Urged for Economic Spark

The downshift was most dramatic in the housing market, where the April 30 end of a tax credit for signing a purchase agreement caused an unexpected collapse in sales to record lows. But reports last week also showed a slowdown in manufacturing, which had been leading the economic recovery, and ...

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