Home » Most Recent Stories

ECRI: GROWTH SLOWING, DOUBLE DIP UNLIKELY

5 February 2010 by Cullen Roche 0 Comments

The ECRI has released their latest reading on their weekly leading indicator and the news is becoming a bit more mixed.  The leading index fell to 130.9 from last week’s reading of 131.4.   Of concern is the slowing annualized growth rate.  The annualized growth rate dipped to 21.5% from 22.7% last week.

In the video attached, Lakshman Achuthan describes the potential negative impacts of this.   While the slow-down in growth is alarming it does not point to signs of a double dip.  Achuthan says:

“The continued easing in WLI growth indicates that U.S. economic growth will start decelerating in the coming months.”

Achuthan says the chances of a double dip are “nowhere in sight”.   However, he says stock prices are unlikely to perform anywhere near how they performed last year.

Source: ECRI

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.