`SIGNS OF PROGRESS' VS. SIGNS OF SLUMP

`SIGNS OF PROGRESS' VS. SIGNS OF SLUMP

President Barack Obama vowed to rebuild the U.S. economy on a foundation of rock. Good thing, too, because the structure is still shaky, according to a slew of economic reports. Obama's Apr. 14 speech at Georgetown University called for five pillars on which to base a recovery: Wall Street regulation, education, renewable energy, containment of health-care costs, and long-term deficit reduction. While Obama said he sees "signs of economic progress," the recession shows plenty of staying power. Demand is so soft that companies are being forced to cut prices almost across the board. In March, producer prices dropped 1.2% and consumer prices fell 0.1%, posting their first annual decline since 1955. What's more, retail sales in March sank 1.1%, and industrial production slid 1.5%. The Fed added a smidge of cheer: Its Beige Book report on regional conditions on Apr. 15 said that 5 of its 12 banks saw "moderation in the pace of decline."

See PAGE 008 "Consumer Spending Steadies--For Now" and PAGE 012 "Larry Summers on Whether Those Rays of Economic Daylight Are Real"