12 Signs The Economic Slowdown The Experts Have Been Warning About Is Now Here

TEC ^ | 6-3-2017 | Michael Snyder

[blam]

Since the election there has been this perception among the American public that the economy is improving, but that has not been the case at all. U.S. GDP growth for the first quarter was just revised up to 1.2 percent, but that is even lower than the average growth of just 1.33 percent that we saw over the previous ten years. But when you look even deeper into the numbers a much more alarming picture emerges. Commercial and industrial loan growth is declining, auto loan defaults are rising, bankruptcies are absolutely surging and we are on pace to break the all-time record for most store closings in a single year in the United States by more than 20 percent. All of these are points that I have covered before, but today I have 12 new facts to share with you. The following are 12 signs that the economic slowdown that the experts have been warning about is now here…

#1 According to Challenger, the number of job cuts in May was 71 percent higher than it was in May 2016.

#2 We just witnessed the third worst drop in U.S. construction spending in the last six years.

#3 U.S. manufacturing PMI fell to an 8 month low in May.

#4 Financial stocks have lost all of their gains for the year, and some analysts are saying that this is “a terrible sign”.

#5 One new survey has found that 39 percent of all millionaires “plan to avoid investing in the coming month”. That is the highest that figure has been since December 2013.

#6 Jobless claims just shot up to a five week high of 248,000.

(snip)

[SkyPilot]

I am heartened by Trump, and there is optimism, but also omens of great caution:

- Even Donald Trump called the Stock Market a great big bubble back in September; he is correct. The Stock Market gains of the last few years have been largely fueled by multiple QE, ZIRP, manipulation, hot air, and guarded by the Plunge Protection Team (PPT)

- The Republicans in Congress are blowing it.....BIG TIME. NeverTrumpers like Ryan and McConnell are sabotaging Trump and his agenda.

- For the economy to really recover, ObamaCare must be killed, and again, the Republicans refuse to do so

- Obama left a mess of debt, corruption, and dependency; and these dangers have not been dealt with, AT ALL

- Derivatives are the WMD of the financial world, and they are a more a danger today than they were last year

- There are over 94,000,000 Americans not in the workforce, and many (if not most) of them are dependent on the producers to fund their lifestyles and survival

- The Deep State and the Globalists are now engaged in an all out War with Trump (they are especially enraged at his pulling out of Paris Climate "deal" that funded other nations to the tune of hundreds of Billions of dollars; don't be surprised if they "pull the plug" on the US economy out of spite and to destroy him

[reformedliberal]

Funny during the reign of the a@@clown we heard nothing but wonderful things about the economy
_____________
Not from Michael Snyder. His career is in predicting disaster via numbered lists.

[elpadre]

1st Qtr. economics were driven by Obama policies, not Trump’s.

[TexasGator]

“#4 Financial stocks have lost all of their gains for the year, and some analysts are saying that this is “a terrible sign”.”

Cherry picking. My bank stocks are still in 30% from last September.

[mosesdapoet]

Although I’ve been accused of doing so I very rarely use the sources link. TEC sounds like a globalist white guilt trip media venue. Run by a bunch of Marxist academics who might still be collecting in some form or another from the public trough. The next thing they will be touting is the homeless. What they won’t be spouting off on, is what “sanctuary cities” is costing US.

[elpadre]

I have wondered if the huge surge in internet sales is a fad we are going through soon to fall back to a more balanced position. Any thoughts??

[be-baw]

Once again, still and forevermore the sky is falling. Good thing I didn’t see this before I sent my check to FR.

[elpadre]

I have wondered if the huge surge in internet sales is a fad we are going through soon to fall back to a more balanced position. Any thoughts??

[Roman_War_Criminal]

Snyder has books to sell and “doom & gloom” sells.
He’s also fancying himself for a Congressional Run - big LOL!

I stopped reading his trash a while back.

[Mr. Lucky]

Actually, the S&P Financials Index is higher than it was at
the close and of 2016 (which is an indication of strength considering that the Financials Index began a marked bullish trend right after the election).

[usconservative]

that’s all about amazon.

Correct. The shift in shopping patterns to online from brick and mortar is all about three things:

1. Price.
2. Convenience.
3. Service.

When brick and mortar stores figure out how to compete with Amazon they'll start winning sales again.

One thing I have noticed is that the small(er) mom & pop outlets are doing pretty well these days. They do it through Convenience and Service.

Nothing beats personalized service to start with (a big feature of Amazon's online experience) and convenience. The small mom & pop stores are listening to their customers and adopting much of Amazon's experience and convenience model. Anytime I walk into a store and can purchase something right off the shelf that meets my needs and a price I like and don't have to stand in line to pay, I mentally note that store as being repeatable (meaning I'll go there and buy again.)

In the case I'm talking about, I had what I needed in my hands and before I knew it I had one of the owners standing next to me ready to accept payment via their iPad and a credit card reader. The entire transaction took less than 20 seconds and I was out the door.

Stores that want to fix their shopping experience need to pay attention to how Amazon does it online. Add in the Personal (human) experience that shows a purchase is having an impact on someone's life/livelihood and customers can be won.

[blam]

"I have wondered if the huge surge in internet sales is a fad we are going through soon to fall back to a more balanced position. Any thoughts??"

The last time I went to a mall was in Houston in the early to mid-80's. I encountered groups of threatening (looking) Black youts....I don't need that.

I did read this recently:

Dollar General Openings Account For 80 Percent Of New Stores In The US And Largest Occupation In US Is In Retail

[Vinnie]

“This is the worst economy , under Trump, since..since the Revolutionary War.”

In truth the collapse of Obamacare, several bankrupt States ,et al will be hung around Pres. Trump’s neck.
The MSM and dims will see to it.

[CommieCutter]

Package thieving might become a negative drawback to online shopping..

[LS]

Actually no, the Atlanta Fed revised 2Q estimates last Thurs from 3.7 to 4.2, giving us a shot at 4% GDP growth this year. Then, Friday, revised 2d Q DOWN to 2.7% saying “we’re not in prediction business” (LOL!)

I think high threes is the floor this year.

[Alberta's Child]

There's plenty of good and bad news all around, but there is one underlying trend in the U.S. economy that points to serious trouble.

Economic growth is a function of two things: growth of population and growth of productivity. An economy simply will not grow unless it has one or both of these. The problem with the U.S. right now is that we have more than 95 million adults who aren't even part of the work force anymore. Many of these are retirees, so their presence isn't a problem except that they act as a giant drag on the "productivity" side of the equation.

I don't see this changing very quickly, and I suspect a lot of folks here on FreeRepublic won't be happy with the measures this country is using to prop up those numbers.

[LS]

No, construction every where I go is strong-—buildings, factories, not just homes. Intel putting in a new 4k job plant a few miles away, Johnson aircraft expanding, Casa Grande has two massive businesses going in.

[jmaroneps37]

Yes consumer confidence is down the stock market is down; unemployment is at a 16 year high and everyone agrees Trump was a mistake..... oh wait ..... never mind. As you were.

[JayGalt]

+1

[JayGalt]

I doubt it. The savings in time, in gas and in the ability to comparison shop give internet sales a solid advantage. What is happening is that smaller businesses are gaining an internet presence as well. I rarely shop at any but grocery stores.