Retail sales dropped by a large amount in December. Such a significant downward move is a bad sign for the economy. Because 70 to 80 percent of GDP is driven by the consumer, the move does not bode well for the economy’s health.
I am sure that GM's decision to close factories was a tough call to say the least. The auto industry has always had the problem of adjusting production to high cyclical auto demand, but Barra is making the right moves.
