We now have official confirmation that the U.S. economy has dramatically slowed down. In recent days I have shared a whole bunch of numbers with my readers that clearly demonstrate that a new economic downturn has begun. And even though stock prices have been rising, the numbers for the “real economy” have been depressingly bad lately. But what we didn’t have was official confirmation from the Federal Reserve that the economy is really slowing down, but now we do. According to the Atlanta Fed’s GDPNow model, the economy is growing “at a 0.3 percent annualized rate in the first quarter”…
The U.S. economy is growing at a 0.3 percent annualized rate in the first quarter, based on data on domestic construction spending in December released on Monday, the Atlanta Federal Reserve’s GDPNow forecast model showed.
For years, the goal has been to get U.S. growth above the key 3 percent threshold, but what this forecast is telling us is that economic growth is currently at one-tenth of that level.
That is just barely above recession territory.
So when I say that we are teetering on the brink of a recession, I am not exaggerating.
We also just got some really bad news about construction spending…
Construction spending fell 0.6% in December from November, based on a seasonally adjusted annual rate, released today by the Commerce Department. Compared to December a year earlier, total construction spending inched up only 0.8% (not seasonally adjusted), the lowest growth rate since Oct 2011, coming out of the great recession.
Now we can add that to the list of all the other numbers that are telling us that very rough times are ahead.
Meanwhile, debt levels in the U.S. just continue to explode.
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