The economy is looking worse by the day, especially if you watch the Atlanta GDP tracker. It plunged from -1% to -2.1%. During the past two weeks, the tracker showed zero growth. It’s hurtling into negative territory very rapidly. This is a very bad sign.
The Federal Reserve Bank of Atlanta’s GDPNOW economy tracker is a decent predictor of what is going on in the economy although we won’t get the official numbers for nearly a month.
Data about manufacturing and construction spending pushed the numbers down. Biden is busy outsourcing to China by regulating the US to death as he spends wildly, levels sanctions that hurt the US and destroys the energy sector.
The Institute of Supply Management said on Friday that its barometer of manufacturing activity fell to the lowest level since May 2020, when the economy was staggering from the onset of the pandemic and lockdowns. The Commerce Department’s report on construction spending showed a 0.1 percent drop, the first decline in 8 months.
So, no pandemic, and Putin doesn’t have the power to do this. Who will Biden blame? Yesterday, he blamed Putin anyway.
The GDPNOW tracker is intended to show what recent data imply for current economic growth. It’s not a forecaster.
The economy shrank 1.6 percent in the first quarter. The formal definition is recession occurs with two quarters of negative growth. Many Americans feel it’s a recession now. We also see stagflation in our future thanks to the Keynesians who believe raising the interest rate is the way to go.
Economists are increasingly worried about second-quarter growth. Bank of America slashed its forecast to zero on Friday morning, prior to the publication of the data that sent GDPNOW down.
Did you see Kohl’s stock market numbers? They crashed. To me, it means Americans stopped spending. Kohl’s is the average American’s department store.
More rate hikes are coming because that’s all Keynsians have in their bag of tricks.