U.S. economy: Manufacturing slowdown the latest sign the recovery is faltering
By Neil Irwin,
WashPost
Published: June 1
The economic recovery is faltering, and Washington is running out of ways to get it back on track.
Two bright spots over the past few months — manufacturing and job creation by private companies — both slowed in May, according to new reports Wednesday. The data come amid other reports of falling home prices, declining auto sales, weaker consumer spending and a rising pace of layoffs.
Stocks tumbled Wednesday on the discouraging economic news, with the Standard & Poor’s 500-stock index off 2.3 percent. It was the index’s steepest decline since August.
Just a few months ago, the economy seemed poised to finally strengthen. Business confidence was rising, and extensive government efforts to foster growth were underway. But those hopes are being dashed. Forecasters who once projected economic growth of 3.5 to 4 percent for the year have slashed their estimates with each round of disappointing numbers.
(More here.)
WashPost
Published: June 1
The economic recovery is faltering, and Washington is running out of ways to get it back on track.
Two bright spots over the past few months — manufacturing and job creation by private companies — both slowed in May, according to new reports Wednesday. The data come amid other reports of falling home prices, declining auto sales, weaker consumer spending and a rising pace of layoffs.
Stocks tumbled Wednesday on the discouraging economic news, with the Standard & Poor’s 500-stock index off 2.3 percent. It was the index’s steepest decline since August.
Just a few months ago, the economy seemed poised to finally strengthen. Business confidence was rising, and extensive government efforts to foster growth were underway. But those hopes are being dashed. Forecasters who once projected economic growth of 3.5 to 4 percent for the year have slashed their estimates with each round of disappointing numbers.
(More here.)
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2 Comments:
Recovery? What recovery? Excepting the government component of GDP calculations, we haven't been in a recovery.
But, let me guess - the manufacturing slowdown was 'unexpected'? Same old song and dance for two years running now.
I am not surprised by the fact our economy remains in the doldrums and our housing market is completely moribund. I expect prolonged malaise based on the policies that are being implemented today. The policies that exascerbated the malaise during The Great Depression are the same policies that are being implemented today. The only difference is we probably won't have a world war to get our economy moving a few years down the road. So, we're going to have to rely on adults to get us out of this economic mess.
So what do adults do? Follow the policies of Herbert Hoover and today's Republican Party, which make recessions worse, or follow the policies of Roosevelt and Keynes, of stimulating the economy to create jobs, which worsens the deficit in the short term but leads to higher GDP and more revenue in the longer term?
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