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

——————————————————————————————————————————————————

The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein and may or may not seek to do business with one another or companies mentioned via this website. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

A brief note on comments – The increase in users in recent months has resulted in an increase in unproductive comments. Any user who engages in the use of racial epithets or uses the comment section as a place to insult other users will be banned from the site. The comment section is welcome to all readers who are interested in asking pertinent questions and/or engaging in thoughtful, intelligent, and productive debate. In short, just be nice. Thanks.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.