Posted on 05/31/2011 1:43:43 PM PDT by mdittmar
A double-dip in home prices, pessimistic consumers and a slowdown in regional manufacturing raised concerns on Tuesday that the economy's soft patch could become protracted.
"The question is, 'Is the softer data we're seeing transitory, or is it likely to persist throughout the remainder of 2011?' Right now, that's an open question that investors are trying to figure out," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
The U.S. economy grew at a tepid 1.8 percent annual rate in the first three months of the year, and these fresh signs suggest the recovery is still struggling to gain momentum.
The consumer also appears to be struggling, with data last week showing consumer spending was crimped by high gasoline prices in April. Consumer spending makes up more than two-thirds of economic activity.
A drop in a gauge of business activity in the Midwest added to other regional reports that have pointed to slower growth in manufacturing this month amid supply chain disruptions from the major earthquake in Japan in March.
It also boded poorly for a national factory report due on Wednesday, which is expected to slow, and casts a cloud ahead of a report on national employment on Friday.
"While weakness in manufacturing may simply reflect auto parts shortages, this is the fifth regional manufacturing index to fall sharply in May," wrote Chris Low, chief economist at FTN Financial.
"(It) reinforces the general sense the economy is losing steam," he added.
(Excerpt) Read more at reuters.com ...
It wasn't gaining steam in the first place... borrowing and spending trillions in the past couple of years wasn't "real" economic activity... no more so than me taking out cash advances on my credit cards and counting that as growth in my personal financial situation.
“the economy’s soft patch could become protracted”.....
soft patch?.....These comedians are very funny!
HOPE & CHANGE! GREEN SHOOTS! MOVING IN THE RIGHT DIRECTION!
Let me guess, “unexpected”? =.=
BINGO!....We have a winner!
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