Posted on 05/24/2011 8:52:53 AM PDT by Snuph
The latest and last regional index confirms that the economy is now not only slowing its rate of expansion, but is in fact contracting. The narrative is plain ugly: "The index of overall activity was pushed into negative territory by weak readings for shipments and new orders, while employment growth held steady. Other indicators suggested additional softness. District contacts reported that capacity utilization turned negative and backlogs fell further, while delivery times grew more slowly. In addition, manufacturers reported an uptick in finished goods inventory growth." But not all is bad: for example those predicting inflation are once again proven correct: "Distrcit manufacturers reported that raw material prices increased at an average annual rate of 6.12 percent in May - the highest reading since the inception of our surve in December 1993 - compared to April's reading of 4.81 percent." Fear not: it is "transitory." And 82% of experts say no QE3 is coming so....
More from the report:
(Excerpt) Read more at zerohedge.com ...
‘Hope’ quit working a long time ago - and the liberal elite ‘change’ is a nightmare...
I am surprised at how little play this story is getting. These numbers are significant signs of trouble, especially when added to everything else.
“how little play this story is getting”
The media has only two lines of reporting:
1. CYA Obama
2. Blame GWB
We now have a trifecta. Philly Fed, Chicago Fed and now the Richmond Fed.
Whoopsie. Looks like all of us who were skeptical of the “recovery” - in that it was not organic, all of this “recovery” was merely transfer payment spending by people on government cheese and government employees - were right.
Oh, and we never did get to 8% unemployment. So much for the Obama administration’s promises of the ‘stimulus’ working to “save or create” jobs.
What worries me now is that this is enough data to cause wonks inside the Fed to recommend some new monetary goosing of the economy.
as it is just another nail in Obama’s political coffin, we shall grin and bear it
This news should be good for another 300/500 points on the Dow. Turn on those computers and buy buy buy!
unexpected, right?
The propaganda arm of the DNC will ignore this news at all costs. OH that’s MSM to some people.
The propaganda arm of the DNC will ignore this news at all costs. OH that’s MSM to some people.
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