Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
September 19, 2014

Expect Slow Growth to Continue

While many predicted that the pace of economic recovery would pick up in the second half of 2013, Walter Kurtz looks at “four indicators signaling a tough road ahead.”

“1. The rate of improvement in the housing sector is slowing. Weak new home sales number was the first indication that not all is well with US housing…but now home price increases (HPI) have leveled off… 2. Personal income growth remains weak… 3. Growth in consumer spending (which represents over 70% of the GDP) has slowed as well.”

“4… consumer confidence has peaked in the second quarter and has been declining steadily since. What’s particularly troubling is that according to Gallup polling right before this weekend, economic confidence index suddenly dove to the lowest level since the sequester went into effect in March. The uncertainty related to the Syrian crisis and potential US military involvement is one potential explanation.”

  • Wynstone

    I think it all comes down to Reason No. 2. Growth in personal income is key for a real bottom up, strong recovery. The investor class needs to create American jobs. It would take some decisions to be made with a nationalist perspective which I don’t expect. As long as cheap labor elsewhere results in a better bottom line for the investor, they will continue to abandon the American worker to their own devices and say “It’s your own fault if you aren’t succeeding. You clearly lack discipline if you’re not exceptional.”

  • Nicholas W. D’Amato

    I agree. The economy won’t be better until the Middle Class makes better wages, which would mean the wealthy corporate leaders would need to take a tiny paycut or get one less bonus, and we know that they are very unlikely to do so..

  • Leftcoastrocky

    austerity measures (e.g., sequestration) by the Teapublicans are slowing the economic growth

  • Leftcoastrocky

    how can businesses have confidence when Teapublicans are threatening to hold the debt ceiling (and thus the full faith and credit of the U.S.) hostage

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