Economic data is still indicating very slow growth. Seasonal adjustments are particularly problematic due to distortions from the Great Recession and the New Normal.
GDP has been growing, although at an anemic rate. But that hasn’t produced any significant improvement for Joe Sixpack. He is not much improved from the end of the recession.
Because of new factors such as QE and unprecedented deficit spending, the LEI in October 2010 continues to look like it is a rocket ship headed for lunar orbit. Other indicators are suggesting a more gradual economic improvement.
QE2 dominated this week’s news, but there was also a good employment report. Other economic indicators were mixed.
Our economic review highlights employment this week. Employment has actually behaved better after bottoming than in the two prior recessions. However, the magnitude of unemployment is much larger this time.