Consumer spending is what moves economies in and out of recessions.
Numbers from the Commerce National Bank, Eagle Economic Index show retail sales slipping further and further locally. Down 16 percent from the same time last year. All of the other statistics that make up this report are down considerably as well.

The only exception to the dismal numbers is the local housing market. Housing permits are up 23% from October of 09 to October of 08. Number of homes sold October to October is up 14%. Even the price of homes has increased 8 % October to October.

Real Estate experts say the Federal Government's first time home buyers tax credit program is accounting for a good deal of the local activity.

The program was set to expire at the end of November, but the Obama administration extended it through April of 2010.

The credit now covers first-time homebuyers up to $8,000 and current homeowners looking to buy a new home up to $6,500. Unlike the first version, which was signed into law in September 2008, the new tax credit does not need to be paid back.