ECRI: ECONOMY CONTINUES TO SLOW
From Reuters:
A measure of future U.S. economic growth fell to a 35-week low in the latest week, indicating a slowing of the recovery, a research group said on Friday.
The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index slumped to 127.3 for the week ended May 14 from 132.0 the previous week.
That was the lowest level since Sept. 11, 2009, when it stood at 127.0. The index’s annualized growth rate fell to a 43-week low of 9.0 percent from 12.2 percent a week ago. That’s the lowestlevel since July 17, 2009, when it stood at 8 percent.
“With WLI growth sinking further to a 43-week low, U.S. economic growth is set to start easing in fairly short order,” said Lakshman Achuthan, managing director of ECRI.
Wonder if Lakshman is starting to regret all those comments about no chance of a double dip. ha!
At what point will individuals understand that if small business and the middle class around the world are not participating in this recovery (I’m not talking about the 40+ year old’s starting a home business because they do not have a job) then the recovery ain’t gonna happen. Europe will discover this in a month or two.
As has been proven, money that is given to the banks merely ends up in the pockets of millionaires who receive it as interest and dividend payments or in the pockets of successful speculators who reward governments by creating false signals via the stock market. These false signals as interpreted by Sumners, Geitner and the street confirm the economy is recovering….so passe! Anyone who believes that the stock market has a + correlation to the production of goods and services and who have invested for that reason are now having their money taken away.
It seems to me that the peek of the growth chart did not correspond to a particularly large post recession growth rate. The reduction and the trend of the indicator has got to be troubling.
This only proves the endogenous of the deficit: the sole reason that the real economy is experiencing stronger-than-expected growth in tax receipts is BECAUSE the government ran large deficits.