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.