Another Week Of Dismal Economic News

"It’s been another disappointing week in President Obama’s imaginary recovery. Gas prices are up, economic growth is down, and household incomes continue to decline. The middle class simply can’t afford another four years like the last four years. Mitt Romney will deliver a real recovery for middle-class families, with 12 million new jobs and higher take-home pay for American workers.” – Amanda Henneberg, Romney Campaign Spokesperson

MONDAY – Economic Reports Showed Growth Significantly Below Its Historic Rate And Gas Prices Continuing To Rise In September:
Chicago Federal Reserve: Economic Growth “Index’s Three Month Moving Average … Lowest Level Since June 2011…” “The index’s three-month moving average, CFNAI-MA3, decreased from –0.26 in July to –0.47 in August—its lowest level since June 2011 and its sixth consecutive reading below zero. August’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend.” (The Federal Reserve Bank of Chicago, “Index shows economic activity weakened in August,” Press Release, 9/28/12)

According To A Report From The U.S. Energy Information Administration, The Monthly Average For Gas In September Increased To $3.91 Per Gallon From $3.78 In August. (U.S. Energy Information Administration, 9/24/12)

TUESDAY – New Research Showed Median Income Has Fallen By Over $4,500 Since President Obama Took Office:
Median Household Income Has Declined More Than 8% Under President Obama – A Drop Of More Than $4,500. “Median household incomes have fallen 8.2 percent since President Obama took office and continue to drop despite the official end of the recession, a new study shows. Data compiled by Sentier Research found that since the economic recovery technically began in June 2009, median household income has dropped 5.7 percent. As of August, that median income was $50,678 -- also down 1.1 percent from the month prior. And since Obama took office in January 2009, the median income has fallen 8.2 percent, from $55,198 to its present figure.” (“Household Income Down 8.2 Percent Since Obama Took Office, Study Shows,” Fox News, 9/26/12)

WEDNESDAY: A Survey Of Business Leaders Revealed Widespread Pessimism And Weak Hiring Prospects:
Business Leaders’ View Of The U.S. Economy “Deteriorated Sharply In The Third Quarter And Is Now As Bleak As It Was In The Immediate Aftermath Of The Last Recession.” “U.S. chief executives' view of the economy deteriorated sharply in the third quarter and is now as bleak as it was in the immediate aftermath of the last recession, with more planning to cut jobs over the next six months, according to a survey released by the Business Roundtable on Wednesday.” (“CEO Confidence Tumbles To Three-Year Low: Roundtable,” Reuters, 9/26/12)

· “The Sharpest Drop” Ever Recorded By Business Roundtable: “The group's CEO Economic Outlook Index tumbled to 66 in the third quarter from 89.1 percent in the second, in the sharpest drop recorded in the survey's decade-long history.” (“CEO Confidence Tumbles To Three-Year Low: Roundtable,” Reuters, 9/26/12)

· The Number Of Business Leaders Who Plan to Hire In The Next Six Months Plummeted To 29% In The Report. “A survey of U.S. chief executives shows a sharp drop in the number of large companies that plan to add jobs or hire more workers. The Business Roundtable says that only 29 percent of its member CEOs plan to increase hiring over the next six months. That’s down from 36 percent in June, when the group last released its quarterly survey.” (“US CEOs Report Gloomiest Outlook In 3 Years As Hiring, Sales Expectations Fall,” The Associated Press, 9/26/12)

· “CEOs Are More Pessimistic About Their Future Sales And The Overall U.S. Economy.” (“US CEOs Report Gloomiest Outlook In 3 Years As Hiring, Sales Expectations Fall,” The Associated Press, 9/26/12)

THURSDAY – Economic Growth Was Revised Sharply Downward And Durable Goods Orders Plunged The Most Since January 2009:
Second Quarter GDP Growth Was Slashed From Earlier Estimates To A Dismal 1.3%. “The government cut its calculation of U.S. growth in the second quarter to 1.3% from 1.7% in its third and final review, citing less consumer spending and business investment than previously estimated.” (“Second-Quarter U.S. GDP Revised Down To 1.3%,” MarketWatch, 9/27/12)

· Far Below Economists’ Expectations: “Economists polled by Reuters had expected second-quarter GDP growth would be unrevised at a 1.7 percent pace. The economy grew at a 2.0 percent pace in the January-March period.” (“Second-Quarter GDP Cut To 1.3 Percent On Drought,” Reuters, 9/27/12)

· “Disappointing…” “‘The slowing came primarily from a decline in durable goods consumption and fixed investment,’ said Scott Hoyt at Moody's Analytics, calling the GDP report ‘disappointing.’” (“US Economy Grew Only 1.3% In Q2: Official,” Agence France Presse, 9/27/12)

“New Orders For Long-Lasting U.S. Manufactured Goods In August Fell By The Most In 3-1/2 Years…” “New orders for long-lasting U.S. manufactured goods in August fell by the most in 3-1/2 years, pointing to a sharp slowdown in factory activity even as a gauge of planned business spending rebounded.” (“US Durable Goods Orders Drop Worst Since Recession,” Reuters, 9/27/12)

· “Dived 13.2 Percent, The Largest Drop Since January 2009…” “The Commerce Department said on Thursday durable goods orders dived 13.2 percent, the largest drop since January 2009, when the economy was in the throes of a recession.” (“US Durable Goods Orders Drop Worst Since Recession,” Reuters, 9/27/12)

· “The Weakness Suggested Third-Quarter Economic Growth Would Probably Not Improve Much From The April-June's 1.3 Percent Annual Pace.” (“US Durable Goods Orders Drop Worst Since Recession,” Reuters, 9/27/12)

FRIDAY – A Key Regional Manufacturing Index Showed Contraction For The First Time In Three Years:
In September, Manufacturing Activity In The Chicago Region Contracted For The First Time In Three Years. “Manufacturing activity in the Chicago region contracted for the first time in three years in September, according to the MNI Chicago Report released Friday. The Institute for Supply Management-Chicago Inc’s business barometer fell to 49.7 in September from 50.3 in the prior month. Any reading below 50 indicates contraction.” (Greg Robb, “Chicago PMI Drops Into Negative Territory In Sept.,” MarketWatch, 9/28/12)

· Headline: “The Chicago PMI Report Was One Of The Nastiest Pieces Of Economic Data We've Seen In A Long Time” (Business Insider, 9/28/12)

· “There Are No Encouraging Signs In This Report.” “The Chicago PMI had held up better than other regional manufacturing surveys, but this strength “appears to be waning,” said Thomas Simons, an economist with Jefferies. After hitting 64.0 in February, the Chicago PMI has lost momentum over the next seven months. ‘There are no encouraging signs in this report,’ Simons said in a note to clients.” (Greg Robb, “Chicago PMI Drops Into Negative Territory In Sept.,” MarketWatch, 9/28/12)