GDP was revised downward. It doesn't surprise me at all. I hope it doesn't foretell more bad news to come, but I am not holding my breath.
Consumer spending is slowing down. Keep in mind that consumers are responsible for 75% of the GDP.
From what I have read, the average consumer is back up to their neck in debt - again! Wages have been stagnant for a very long time. The average worker is having difficulty just meeting their basic needs. Like it or not, the vast portion of the population is what drives consumption that, in turn, drives GDP. Where is the growth going to come from?
The real problem is the concentration of wealth in the point 1 percent of the population. These folks have the same amount of wealth as the bottom 90%. Their spending relative to their asset base is microscopic. So, their consumption is not driving the economy.
With the government deep in debt and the money supply high, it doesn't look good for the country. If we do go into a recession, many of the typical levers the Federal Reserve uses will not be available. Add the "tariff tantrum" into the mix and things look dire.
While I hope I am wrong, the signs are not good.
Battan down the hatches, a category 5 may be blowing in!
