The hype about a ‘robust’ US economy is just that …hype…
Consumers maybe spending….
But buffeted by higher taxes, little to no income increases and trade wars around the world..and Donald Trump himself?
Things are slowing slipping for the American economy…
Trump’s 4% growth promise is just NOT gonna happen….
And his promise of bringing jobs back to America rings hollow across the country also….
Consumer spending continues to power the economy, but business investment has now contracted for six straight months, falling 3 percent in the third quarter, the biggest drop since the end of 2015. A number of companies have said they are pulling back because of economic uncertainty, particularly related to whether trade rules will be shifting with China and other countries. Spending on both structures and equipment was deeply negative.
Slow growth abroad and problems at big employers such as Boeing and General Motors also were a drag on growth. Tens of thousands of workers went on strike at GM in September, halting most production at the company. And Boeing, the U.S.’s largest exporter, remains under pressure after two fatal crashes of its 737 Max jets in the past year.
After revving to 2.9 percent growth in 2018, the U.S. economy appears to be settling into the slower pace that it notched during the final year of the Obama administration. Trump vowed during his presidential campaign that he could boost the economy to around 4 percent growth, a level not seen in years. He has also promised at least 3 percent growth a year, an annual pace he has yet to achieve.
But the consensus view is that the economy is shifting to a lower gear….
Note…
Could things become even worst if Trump and Congress can’t come together on a spending bill and the government shutdown…AGAIN?
…
Trump on the 1.9% GDP past and Present?
The U.S. economy grew at a 1.9% annual rate for the 3rd quarter, leading CNBC to look back at how President Trump described 1.9% GDP in 2012.
Said Trump: “The economy is in deep trouble.”
And here’s how Trump described the economy yesterday: “The Greatest Economy in American History!”