Stagconomy Still Sluggish
We woke up today with more sobering news. After 4 years of economic malaise, the economy is still not on the path to recovery we all hope for. In the Fourth Quarter of 2011, U.S. GDP growth was at 3%. Analysts had predicted Q1 2012 would indicate a 2.6% annual growth rate for this year (which is itself woeful). Instead, the Commerce Department released the data today showing growth is at a measly 2.2% annualized. This probably means a sluggish job market (indicated by a drop in hiring and increase in unemployment applications over the last 2 weeks) and that the housing market will continue in many places to drop or sit at bottom. I hate to say it, but this is almost exactly what we were seeing in terms of indicators at the beginning of 2011 headed into Summer. The worst may not be over, but it’s a sign that it may be time to plan for the future!