Friday, February 1, 2013

Two Warnings From the Last GDP Report

The above graph shows the percentage change in exports (blue) and imports (red) from the preceding quarter.  The drop in exports is obviously related to the global slowdown.  The drop in imports (red) is probably indicative of a drop in consumer demand -- never a good thing.  Also note the drop in imports has occurred for two quarters -- again, not a good development.