Recession Stats: June 2014

The economy is doing quite poorly. Recovery is still a way in the distance. We examine the St Louis Fed's stats again as we have done since the beginning.

Let us begin with some basics:

Industrial Production is not bad. That is not the problem.

Income is dropping. That is a serious problem that few have addressed.

 

Ironically Retail Sales is keeping steady.

Employment is stagnant. It is hugging the bottom and there is no end in sight. The government is doing all to keep it that way.

GDP on the other hand is in the tank and getting worse. Why? Let us examine the components.

Personal Consumption is increasing but slowly. Note the statement that the cold weather dampened the GDP is out right wrong. It should appear above BUT it does NOT!

Investment dropped. Why? Good question.

Government spending is down and this is a factor!

Also Exports dropped adding t the drop in GDP

Imports remain flat.

Thus we have a drop in Government Spending and in Investment.