It’s tax day and if that doesn’t depress you enough, some of today’s economic data will.
First, Tyler Durden of Zerohedge comments on the Empire Fed manufacturing index which had a big drop:
As if the world needed yet another confirmation that the US economy is floundering (even if it means a new all time high for the now largely laughable farce formerly known as the S&P500), it just got it courtesy of the April Empire Fed Mfg Index, which dropped for the second month in a low to the lowest since January, printing at just 3.05, down from 9.24, and well below expectations of 7.00. Supposedly this too will be blamed on either balmy April weather, or Easter. The key New Orders index dropped from 8.18 to 2.20, which in itself may be insufficient to push the S&P to new all time highs, so the Shipments drop from 7.76 to 0.75 should definitely top the ES well into the green.
And then Reuters reports that China’s not doing so hot either.
“China’s economic recovery unexpectedly stumbled in the first three months of 2013 with slowing factory output and investment spending forcing analysts to start slashing full-year forecasts despite official insistence that the outlook was favorable.
“The world’s second-biggest economy grew 7.7 percent in the first quarter from a year ago, slower than 7.9 percent hit in Q4 2012, below the Reuters consensus forecast of 8.0 percent and confounding expectations of a surprise uptick that emerged after surging credit and export data were published last week.
“‘Industrial production is unexpectedly weak and that’s the source of weakness in GDP. Based on this, the consensus forecasts for GDP are going to be headed lower and we’ll certainly be looking at ours,’ Condon added.”
You can imagine that the data China presents is whitewashed to begin with, so the actual situation is probably much worse.
That has implications for our own recovery and the health of the already ill world economy.