Statistics indicates that the rate of unemployemt in USA is on a all time high after 26 years.As a result the US consumers have cut down on their expenses on cars, mobiles and clothes. In June this year the US consumer confidence has slipped down further below as the rate of jobless persons rose to 9.5 percent. Major companies Google Inc and Microsoft Corp witnessed decline in their profit growth. Finland-based company Nokia had to suffer 67 percent loss in their net income.
On the other hand,Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., suffered huge losses because of lower demand in the U.S. Even the aviation industry in US too seems to be under the grapple of recession as many of the nine biggest U.S. air carriers, including Delta Air Lines Inc., American Airlines, and United Airlines have shown a combined quarterly loss of $1 billion.
Though earnings of Wal-Mart Stores Inc., have fared better than its competitors yet its distribution seems to be worst affected.