Monday, December 3, 2012

The economy shambles along: a study in contrasts

- by New Deal democrat

Continuing with the theme that the economy is a shambles, moving in different directions, here is a study of the contrasts.

For example, housing has finally become a consistent plus for the economy:

While manufacturing, which had been driving the recovery, is actually contracting slightly:

Average hourly earnings have also been declining in real, inflation adjusted terms:

But the ability to refinance mortgage debt has kept consumer spending afloat:

While I'm not sold on the idea that we've entered a new recession, the economy has definitely downshifted since early spring, in a way it didn't do in either 2010 or 2011.