CMI: Disturbing Undercurrents in GDP Numbers and Consumer Activity

January 30th, 2011
in econ_news

flood warning Econintersect:  The latest report (January 30) from CMI (Consumer Metrics Institute) indicates that the on-line consumer durable goods purchases they track are seriously lagging what has been seen in previous recoveries, including that in the first half of 2009.  In addition, they find troubling things buried in the advance GDP numbers released Friday.

Follow up:

Items CMI cites as disturbing in the latest GDP data:  commodity inflation depressing import valuation, low GDP deflator, end of inventory build and government spending cut backs.  From the CMI report:

(Our data) speaks to more than the continued possibility of a (now generally dismissed) "double-dip" recession. It indicates that discretionary spending habits have changed (and remain changed) for the demographics that we track. The lingering contraction (in our data) indicates that modest prolonged year-over-year contraction may be a new "normal" for the economy. If so, this is not something that the vast majority of Americans have ever experienced.

Source:  GEI Analysis









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved