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Washington Economy- The weakness in auto sales and housing activity has spread to other sectors of economy like non-residential construction, manufacturing, aerospace, software publishing and retails sales. New baseline forecast assumes that the US and Washington economies will be in recession for most of this year, lessening out some time late in third quarter. Growth will remain flat in the first half of 2010 and improve only in the second half of year, even after the economy is in recovery, job losses will continue. The national retail febration released its 2009 economic forecast; projecting retail industry sales (which excludes automobiles, gas stations, and restaurants) will decrease 0.5% form last year. NRF expects more challenges ahead as consumers continue to shift their spending priorities.