The Germans are crazy....but they have a beautiful country.
I’m just not confidant in this part-time employment/low participation economy that consumer spending can be all that exciting. Plus the spending that does take place for financially struggling lower middle class has to all be from cheap imported stuff.
I’m puzzled about ObamaCare, but it boils down to less spending on healthcare in that disastrous first quarter. How could that have improved that much?
I assume these banks know what they’re saying, but weren’t they all predicting growth instead of contraction the last quarter?
Three things really impacted 1Q -
1) Very harsh winter
2) Screwy Obamacare accounting in the GDP number
3) Timing of Easter
The last time Easter was that late here was also negative GDP. Timing pushes “normal” 1Q spending into 2Q.
Another positive point was UPS shipment data today. Domestic package volume up 7.4%. They touch almost all aspects of GDP.
The Pbamacare stuff is still a mystery as to exactly how it’s counted in GDP.