Factory activity expanded at its slowest pace in six months in April, the latest sign that economic growth continued to lose momentum early in the second quarter, though the recovery has not been derailed.
Even as the economic picture has dimmed in recent weeks as the effects of government austerity started to filter through, strength in the housing market has provided an anchor.
New home sales in March were at their second-highest level in three years and overall house prices rose in February, other data showed on Tuesday.
“The numbers are not suggesting that the economy is surging, but none of them are really showing that the economy is falling off the cliff,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York.
This “Well it’s not a complete disaster” attitude is the new normal. One step forward and one step back leaves you in the same place but the press continues to whip out the champagne for each forward step, hoping that the public will get drunk enough to notice that nothing is getting better. This economy desperately needs some surging action and, despite every “necessary” action taken by the government, none of that is happening yet. And yes, you can bet what little retirement savings you have left on the fact that if anyone but The Lightbringer were in office right now the MSM would be oozing concern.
Four more years.