Gloomy forecasts from Goldman Sachs...
From James Pethokoukis's article:
Goldman Sachs is turning increasingly bearish on the U.S. economy, expecting the nation to have added only 125,000 new jobs in April, as the effects of a warm winter, which buoyed employment late last year, wear off.And one strategist believes we will still be "back in the ditch"!
The forecast is far lower than the Reuters estimate of 170,000, and the average 177,250 jobs created every month from December to March. According to a report by the bank’s Chief U.S. Economist Jan Hatzius, the jobs report will be a further sign of a weakening economy, where inventory accumulation has accelerated and final demand growth remains sluggish.
“Real income growth remains soft, partly because of higher energy prices, wealth effects are not yet particularly positive, consumer confidence remains modest, and again some of the recent strength in retail sales probably reflects weather effects,” Hatzius said.
She said she agrees with Goldman economist Jan Hatzius’s forecast of the second half being more “difficult” than the first. “We have seen some deceleration in economic activity” after a mild winter that might have “puffed up” seasonal growth in the first quarter, she said.I don't think we ever left the ditch. Obama and his cronies have just buried the car that much deeper. It will need a wrecker with a big winch to get this car back on the right road.
