7 Critical Data Points Show the US Economy is Hitting a Wall
It’s been declared countless times in the mainstream media that the economy has recovered. The US is out of recession and good times are back again. Yet, there is plenty of data to support that this is not the case. Seven of the top warning signs that the US economy may be hitting a wall are highlighted below.
According to Irwin Kellner, chief economist at MarketWatch:
1. Both consumer confidence and sentiment have fallen unexpectedly.
2. After-tax personal incomes adjusted for inflation have flattened.
3. Sales of both new and existing homes took a surprising stumble.
4. Orders for most durable goods are down.
5. Manufacturing has slowed.
6. Jobless claims are up.
7. Fourth-quarter GDP growth came largely from a slower pace of inventory liquidation, not from an increase in consumer spending.
8. And, as a matter of fact, consumer spending weakened last quarter.
Kellner also points out that consumer confidence has dropped to a nearly 30-year low, new home sales hit record lows, existing home sales are at a seven-month low, and even unemployment claims rose six of the past eight weeks.
In case you need an updated dose of cold, hard reality about the economy, this MarketWatch coverage of the recovery running out of gas is a worthwhile read.