Another Sign of a Recession

In yet another sign that the economy is already well within a recession and shows no signs of coming out of it any time soon a private business group’s measure of the health of the U.S. economy fell much lower than expected in July. The New York-based group The Conference Board reported Thursday that forecasts for future economic activity fell 0.7 percent, much more than the expected 0.2 percent. The index held steady in June, with no change, after falling 0.9 percent for the six months ending in July.

The decline was the steepest in the index this year and the largest decline seen in the index since August 2007, and paints a very bleak picture of potential economic growth in the near future.

The numbers are ``consistent with the weak economy right now, probably an economy in recession,'' James O'Sullivan, a senior economist at UBS Securities LLC in Stamford, Connecticut, said in a Bloomberg Television interview.

The poor showing is the fault of a major housing crisis, large number of jobs cuts and harder-to-get credit. Because of this consumer spending is almost sure to drop off which will only worsen the situation.

This is yet another sign that the nations failing economic policies are not sustainable. America must resurrect its manufacturing base to provide good jobs for its citizens, control budget deficits, stop selling our best companies to foreign investors and start practicing “fair trade” instead of “free trade” that strips America of its sovereignty and decimates the American middle class. We must pressure our government to effectively deal with these challenges before it is too late.

Source Bloomberg News:

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