A small rise in employment in Louisville wasn’t enough to keep the local economy moving upward.
The Federal Reserve’s latest quarterly report shows a 1.1% rise in employment, but a drop in consumer spending in Louisville, which could be a bad sign.
“If sales to consumers are decreasing, maybe this is a harbinger of something worse to come,” says Regional Fed Director Howard Wall
Wall says consumer confidence is likely shaken from the sub-prime mortgage crisis. People may also be spending less because prices of necessities have risen. Either way, Wall says if consumer spending keeps falling, the nation could enter a recession.