Yesterday’s economic news underlined our precarious economic condition; today’s puts a big red circle around it.
The lowered third quarter GDP, failure of Congress to find a plan and European difficulties yesterday were met today with more problems. Stuart Varney of Fox business channel called it “an impending global recession.” Tyler Durden of Zero Hedge blog headlined “Bad Economic News Trifecta Hits – Jobs and Core Durable Goods Worse, Savings Rate Higher as Consumers Hunker Down.”
Durden was referring to this new data: First – the jobless claims of the shortened week went from a revised 391,000 (of course they raised it after the initial report) to 393,000. Durden says the “non seasonally adjusted claims exploded by 74,214.” Ouch.
Then, durable goods came in at a -.7%. There were revisions here, too. The previous month went from a reading of -.8% to a big -1.56%. September was changed from +2.4% to +.97%. This means the third quarter GDP number lowered to 2% will probably clock in even lower.
In the personal spending data we learn that consumers spending has only risen .1%. October savings increased to 3.5%, hence the notion that the consumer is wary of spending anything in this economy.
Add into this China’s manufacturing report that dropped considerably and Germany, considered the strongest economy in Europe, now struggling.
On top of it all, President Obama signals that he wants to increase our spending. Yikes!