The incredible shrinking recovery continues apace. In case you missed it, the latest iteration of Q1 GDP growth is now 2.7%. Remember the initial number was 3.5%, then it got chopped down to 3.0% and now, well here we are in the two’s.
To add insult to injury the inventory growth is now reputed to have accounted for 1.88% of the 2.7%. That game is pretty much over, but it was fun while it lasted.
All of those articles about the average American not buying into economic recovery because they don’t see it in their lives now make more sense. The average American is pretty much more on top of the reality of the economy than are the government bean counters and economists.
At this rate of economic growth you might as well give up on making any meaningful dent in the unemployment numbers. There isn’t enough growth to satisfy the demand created by new market entrants let alone bring back all of those who have lost their jobs and careers.
Maybe Q2 and subsequent quarters will surprise on the upside. They had better because at this rate we’re going to be rolling around in the muck for quite some time.