U.S. Rebound Loses Its Momentum

[CShine]

The once-sizzling pace of US economic growth has eased sharply, according to the latest set of official figures. Output grew at an annual rate of 4% during the last three months of 2003, less than half the 8.2% achieved in the previous quarter.

Analysts, who were taken aback by the scale of the deceleration, pinned the blame on slowing consumer spending - the US's main economic driver. The slowdown could make an early rise in interest rates less likely.

The 4% figure was lower than analysts' growth forecasts of about 4.8%. Lara Rhame, senior economist at Brown Brothers Harriman & Co, said: "Four percent is going to feel like a disappointment compared to the consensus and compared to Q3 but it is still a very respectful rate of growth and details show that the recovery is well on track."

Consumers, whose spending accounts for two-thirds of US economic activity, were blamed for the end-of-year slowdown. Spending growth slipping to 2.6% in the final three months of the year from 6.9% in the July to September period.

http://news.bbc.co.uk/2/hi/business/3445609.stm

[UpInArms]

1. you mean consumers that don't have jobs

are to "blame"?

Consumers, whose spending accounts for two-thirds of US economic activity, were blamed for the end- of-year slowdown. Spending growth slipping to 2.6% in the final three months of the year from 6.9% in the July to September period.

Why those nasty tightfisted unemployed people need to quit worrying about how to put food on the families and go spend some of their money! The best way is to put it on a credit card so that the banks can have a share too!

:mad:

[banana republican]

2. The Cooking Channel

is offering a class in book cooking.

[Sugarbleus]

4. LOL LOL.... good one B.R. heheeh eom

[POed_Ex_Repub]

3. The "rebound" was a fairy tale.

At least for most of us. Oil companies (and I'm sure their CEO's) seem to be doing well.

[Bandit]

16. Exxon had a forth quarter earning increase of 63%

I think a lot was tax payer money.

[dbt]

5. Can you smell what the Regime is cooking?

The books.

BTW: WHAT REBOUND?

:evilgrin:
dbt

[rocktivity]

15. Rebound? It was more like a shuffle

Analysts, who were taken aback by the scale of the deceleration, pinned the blame on slowing consumer spending - the US's main economic driver.

And that was only because of the winter holiday season. Any analyst who were "taken aback" by this "phenomenon" should be on unemployment themselves. Well, what do you know--the honeymoon is over, eh!


rocknation

[thinkingwoman]

18. if they had only asked me

I could have told them growth wouldn't be much. Frankly, I'm shocked it was that HIGH. You're right about the holiday season being the reason and too bad those analysts won't be fired.

As a midwestern small business owner, I can say that things are ever so slightly better this month, but nothing significant. And 1st quarter is still young, and the tax man still cometh.

There simply is no recovery.

[LizW]

6. Interesting

that this news should conveniently come out AFTER the SOTU. :eyes:

[teryang]

7. The bolus of military spending

...and the huge influx of illegals is tapering off. The economic position of the average American continues to deteriorate under the impact of Asian labor standards and fleecing by HMOs, insurance, energy, pharmaceutical companies and the huge increases in state and local taxes.

[DoYouEverWonder]

8. That about sums it up

In the meantime, Bu$h $ Co are bankrupting the US economy and stashing it all away in their offshore accounts, while they laugh all the way to the bank.

[JPace]

9. I live in the Mountains of N.C. and almost

every week we hear of more jobs being
lost. People don't believe the crap that
the AWOL administration is putting out
about the economy. People as scared and
know that nothing is being done by AWOL
to help stop the bleeding of jobs. I
cannot imagine them voting for him next
time and that is saying a lot for N.C.
republicans.

(More than 4,400 jobs lost in WNC since Jan 2003)

Jan 2004 Cooper Bussmann (makes fuses)
Black Mountain (290 jobs lost)
Reason--economic conditions, closing

Jan 2004 Steelcase (makes office furniture)
Fletcher, (480 jobs lost)
Reason--economic conditions, closing

Jan 2004 Drexel Heritage, (Makes furniture)
Marion, (351 jobs lost)
Reason--consolidation with other plants, closing

Dec 2003 Four Leaf Textiles, (Makes Yarn)
Spindale, (63 jobs lost)
Reason--consolidation, closing

Dec 2003 CR Industries, (Makes oil seals)
Franklin, (106 jobs lost)
Reason--reduce costs, layoff

Nov 2003 Square D, (Makes electrical switches)
Asheville, (313 jobs lost)
Reason--jobs to Mexico, closing

Nov 2003 Lustar Dyeing & Finishing (Textile Processing)
Asheville, (80 jobs lost)
Reason--Economic conditions & Foreign competition, layoff

Oct 2003, Simeus Foods International (food products)
Forest City, (275 jobs lost)
Reason--restructuring, layoff

Oct 2003 Cone Mills
Cliffside and Henrietta (625 jobs lost)
Reason--foreign competition, closing

Sept 2003 Shadowline (electronic accessories)
Swannanoa, (77 jobs lost)
Reason--foreign competition, closing

Sept 2003 TDP Electronics (Electronic Accessories)
Swannanoa (139 jobs lost)
Reason--outsourcing, closing

Sept 2003 Broyhill Furniture (makes furniture)
Rutherfordton (506 jobs lost)
Reason--foreign competition, closing

July 2003 Coats American (makes industrial thread)
Rosman (228 jobs lost)
Reason--foreign competition, closing

May 2003 Watts Regulator (Makes metal fittings)
Spindale (119 jobs lost)
Reason--contract completed, layoff

Feb 2003 Cooper Bussmann (makes fuses)
Black Mountain (100 jobs lost)
Reason--Moving production to Mexico)

Jan 2003 Honeywell (makes electro-mechanical switches)
Mars Hill (180 jobs lost)
Reason--Moving to Mexico)

Jan 2003 Simula (makes military flotation devices/parachutes)
Asheville (90 jobs lost)
Reason--consolidating with another plant, closing

Jan 2003 Lustar Dyeing & Finishing (Textile Processing)
Asheville (75 jobs lost)
Reason--Economic conditions, layoff

[llmart]

10. Thanks for the rundown...

on that part of the country. My husband and I are thinking of retiring to Asheville (because it's a relatively progressive part of NC), in about 5 years. Hope once we get a Dem in the WH consumers will be more optimistic and turn all this around. As a progressive Dem who used to live in Charlotte, I like the state's geography but had a difficult time with the people sometimes.

[llmart]

11. What rebound?

n/t

[Gin]

12. "Consumers were blamed" .....boy..it's all up to us...if we spend into

oblivion we are great....if we don't, we ruin the economy and get the blame. The buck stops with us. Literally!

[bleedingheart]

13. NO! Tell me it isn't true! That would mean * was lying to us!

the outrage....

[Cocoa]

14. the party's over already?

man, that was fast!

[Nlighten1]

17. Joementum is gone?

Damn