One of the big questions with our economy today is:
Are the weak data sets that we are seeing transitory or
is it likely to persist throughout 2011 and beyond? And
how far beyond 2011?
These are questions that we, as Americans, think about
daily. The numbers are not good.
The U.S. economy grew at a tepid 1.8% annual rate in
the first three months of the year. These are fresh
signs that suggest the recovery is still struggling
to gain momentum.
A drop in business activity in the US Midwest added to
regional reports that have pointed to slower growth
in manufacturing this month amid supply chain disruptions
(due to the earthquake in Japan and other weather-related
anomalies.)
The consumer also is struggling. Consumer data reported
last week shows consumer spending was crimped by high
gasoline prices in April.
Yesterday's manufacturing data bodes poorly for a national
factory report due today and casts a cloud ahead of a report
on national employment due on Friday.
Although weakeness in manufacturing may simply reflect auto
parts shortages, this is the FIFTH REGIONAL MANUFACTURING
INDEX TO FALL SHARPLY IN MAY.
The Institute for Supply Management Chicago business
barometer dropped to 56.6 in May from 67.6 in April,
the lowest reading since NOVEMBER 2009.
Sheila McKinney
