the Economy: Stuck in The Ditch

The Bush Administration and many economists contend that the long economic downturn is coming to an end, but with a recovery like this, who needs a recession? Statistics released last week indicate that if a turnaround has begun, it has done so with remarkable subtlety:

-- The government's revised estimate of economic output during the second quarter showed a 0.5% drop, the third consecutive decline.

-- Sales of existing single-family homes fell 2.1% in August compared with July.

-- Consumer confidence was down for the third month in a row, according to the Conference Board, a research group.

-- The number of workers applying for initial unemployment benefits rose to 439,000 for the week ending Sept. 14, up from 403,000 the previous week.

-- Monthly orders for durable goods fell 3.8% in August.

Conclusion: America still considers this a recovery that only a President could love.

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CREDIT: [TMFONT 1 d #666666 d {Source: Blue Chip Economic Indicators}]CAPTION: % change in real GNP