The rosy growth picture painted by the Commerce Department for the first three months of this year has been revised downward from first 2.6% to 2.4% and now to the real and bleak 1.8% due to tumbling consumer spending, especially in the services sector. Business investment also slowed alarmingly and the non-residential fixes investment crashed from 2.2% to 0.4%.
New data was released from the Census Bureau on June 6 and from international travel data. Spending went down on services such as foreign travel, legal services, personal care and health care services including dental and home health care. Business spending went down on communications and nonresidential power as determined by data released June 3.
Some are still trying to blame sequester. Others are saying that Bernanke’s taper came too soon.The faux growth forced by Bernanke’s faux money didn’t work so maybe we should extend it another 4 years. Surely it will work then.
In reality, we have had poor growth under Barack Obamanomics.
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