The “experts” have finally admitted that the Obama recovery isn’t really happening.
We have been hearing for months now about how the economy has “finally turned around.”
We knew in our hearts that wasn’t true.
And now the economic indicators have officially caught up.
CNBC reports, “New data show US economy stalled in first quarter.”
The U.S. economy may have stalled in the first quarter.
CNBC Rapid Update, which averages tracking forecasts from economists, fell 0.4 percent to 1.4 percent after the government reported weaker-than-expected consumer spending in February.
One survey participant, Stephen Stanley of Amherst Pierpont Securities in Stamford, Connecticut, is predicting zero growth in the first quarter. That would be the lowest growth rate since the first quarter last year came in negative mostly as a result of harsh winter weather.
“That is not a typo. F-L-A-T,” Stanley said in his report Monday morning. “This is turning into a recurrence of last year’s nightmare first quarter, when weather drove the GDP figure deep into negative territory.
Stanley said he is “very confident” that weather is playing a role, and he predicts “a vigorous rebound in consumer demand in March and/or April (judging by the snow that I drove through to get to work this morning).” Other economists appear to agree; the average second quarter forecast is a robust 3.5 percent, according to CNBC Rapid Update.
The government reported Monday morning that consumer spending rose just 0.1 percent, less than economists had expected. Taking away inflation, real spending actually fell a point. But incomes, including wages and salaries, rose relatively strongly. The combination of growing incomes but declining spending caused the savings rate to surge to 5.8 percent, the highest since December 2012.
I highly suspect that the metric used to measure “growing incomes” needs to be improved. If people are not acting like they are making more money, perhaps that tells us that they are not making more money.