Paul Krugman suggests that higher inflation would provide a boost to employment. A review of the data indicates otherwise. However, building on Prof. Krugman’s more general (unproven) assertions, the June Forecast from Econintersect is for continued growth, but at a slower rate than recent months.
The EEI has moved up for the first time in six months and has returned to positive territory. The recession watch initiated at the end of September has been removed.
The consensus (or average) of economic indicators is for continued slow growth, with Main Street factors lagging Wall Street.
Although the EEI (EconIntersect Economic Index) slipped below zero in November, the important transport component has moved up for the first time in 5 months. Another positive, the rate of decline of EEI has slowed significantly over the past 3 months.
The EEI indicates slowing economic activity and EconIntersect remains on recession watch.