Consumer-led recession may be in progress

CHICAGO, Oct. 6 (UPI) -- Falling retail sales have prompted some analysts to conclude that a consumer-led recession in the United States may be in progress.

Consumer spending accounts for two-thirds of the economy and with financial turmoil making headlines recently, consumers are becoming spending-shy, The New York Times reported Monday.

"The last few days have devastated the American consumer," Walter Loeb, president of consultant firm Loeb Associates told the Times. "They all feel poor," he said

"All the talk about how bad it is out there has started getting in my head," said Claudia Prindiville, a mother of three from Chicago "I still need to shop for my kids' school clothes but I am definitely buying less for myself," she said.

Many U.S. consumers don't feel the pinch in the availability of cash but they are watching their investments, retirement plans and homes all lose value, the Times reported.

Automobile retailers, restaurant groups and others are reporting sharp sales declines, the Times reported.

"We got killed during the back-to-school sales," Dave Cargerman, a clerk at a Chicago Office Depot told the Times. "And that time of year is usually our bread and butter."