It’s official now: US retail sales take a dip in September

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Oct 12: 10% of its workforce, about 1,600 positions, as sales slow and competition intensifies.

“There's no doubt these are challenging times for consumers, both in the US and in economies around the world,'' Chief Executive Officer John Donahoe said Oct. 6. “It will be a challenging holiday season,'' he said.

“Recent intensification of the financial crisis has augmented the downside risks to growth,'' the Federal Reserve said Oct. 8 as it announced a surprise half-point cut in its target rate, to 1.5% . “The decline in energy and other commodity prices and the weaker prospects for economic activity have reduced the upside risks to inflation.''

Consumer prices rose 0.1% in September after falling 0.1 percent the prior month, according to the median forecast ahead of the Labor Department's Oct. 16 report. The increase in prices in the 12 months ended September is projected to slow to 5 % from 5.4 % in August. Housing is likely to continue to be the economy's weakest link into next year.

A Commerce Department report Oct. 17 may show work began on 870,000 homes at an annual rate in September, the fewest since January 1991, according to the survey median. Declines in construction have detracted from growth since the first quarter of 2006.

Another report the same day may show consumer confidence weakened for the first time since reaching a 28-year in June. The Reuters/University of Michigan preliminary sentiment index may drop to 65 this month from 70.3 in September, according to economists' forecasts.