 |
|
|
COFES Blog
May
13
Written by:
Russ Henke
5/13/2007 7:20 AM
Again this past week, the economic news contained
some ominous signs for the businesses and people
of the United States.
Here are just a few items:
- The US Trade Deficit surged in March '07,
up 10.4% from the February level. So far
this year, the US trade deficit is running
at an annual rate of $723 billion, just
a tad below the $765 billion deficit set
in 2006, the fifth consecutive year of
record trade deficits.
- And this was reported as good news: "In
a reversal of recent trade trends, the trade
deficit with China improved in March 2007,
growing by (only) $17.2 billion compared with
an increase of $18.4 billion in February."
- Growth of the US economy, as measured by the
GDP, slowed to an anemic rate of just 1.3%
in Q1 2007, per recent reports. The new trade
deficit number may end up lowering that Q1
GDP figure to 0.7%.
- The Treasury Department said on May 10
that through 7 months of this fiscal year, the
Federal Deficit grew by "only" $80.8 billion.
The federal budget was in surplus for 4 years
from 1998 through 2001. But the 2001 recession,
the IRAQ war, & Bush's tax cuts have put the
budget deep into red ink again, starting in 2002.
Deficits are expected to balloon again soon with
the higher Social Security & Medicare payments
needed as 78 million baby boomers retire.
- Consumer confidence in terms of peoples' feelings
about how the economy and their own finances will
fare over the next six months fell this week to
24.3, a nine-month low.
- Retail sales at stores open at least a year, known
as same-store sales, fell by a record 2.4% in April,
the worst since 1970. Wal-Mart's same-store sales
fell by 4.6% while Target's dropped by 6.1% !!
- Gasoline prices surged this week to a record
nationwide average of $3.07 per gallon, nearly
20 cents higher than two weeks earlier, according
to the latest Lundberg Survey. Regular gas in CA
rose to $3.66 per gallon.
- Not everyone feels the pinch: "Dow index rallies
111 points on May 11, scores fifth straight weekly
gain."
####
Tags:
DISCLOSURE:
The US Federal Trade Commission mandated in December of 2009 that bloggers must disclose any material connection and compensation received for blog posts to inform consumers of paid endorsements.
The blog published here is completely my own and Cyon Research receives no compensation for its content. However, readers should assume that Cyon Research currently has, has had in the past and is likely to seek a business relationship with any company mentioned here.
Likewise, Cyon Research employees may not directly own shares in any company reported on here. However, it is likely that mutual funds or other investment vehicles contain shares that are not under the direct control of company employees.
|
|
|
|