Tags: peter morici | economy | growth | jobs

Morici to Moneynews: Growth 'Will Be Weaker' Despite Jobs Burst

By    |   Friday, 07 June 2013 06:29 PM

Peter Morici, a professor of international business at the University of Maryland, predicted that second-quarter growth will be weaker despite May's stronger-than-expected jobs report.

"The economy is slowing down a bit," Morici told Newsmax TV in an exclusive interview.

"If you look at average jobs growth over the last three months or so, it seems as though we've come down a little bit. Not to an alarming pace, but second-quarter growth will be weaker," he said.

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"It's consistent with contraction and manufacturing and there's been a lot of news about consumer expectations being up, but retail sales, consumer spending accounts all indicate a somewhat slower second quarter."

Payrolls increased 175,000 following a revised 149,000 boost during April that was smaller than first estimated, Bloomberg News reported. The median forecast in a Bloomberg survey called for a gain of 163,000. The unemployment rate increased to 7.6 percent from 7.5 percent as more people entered the labor force, according to the Labor Department.

Editor's Note: Economist Warns: 50% Unemployment, 100% Inflation Possible

Revisions to the previous two months’ payrolls reports subtracted a total of 12,000 jobs to the employment count in March and April.

Employment at factories fell for a third month, dropping 8,000 in May after a 9,000 decrease in the prior month.

Morici also expressed apprehension about the global trade outlook.

"With Japan's policy of trying to cheapen the yen to basically flood the U.S. market with exports, the Germans having to sell to somebody now that they decimated most of the European trading partners with austerity and worse, it's going to be tough here for American manufacturers and they're quite concerned," he said.

The conversation turned to President Barack Obama's meeting in California with Chinese President Xi Jinping.

"Economists on the left, in the middle and on the right, very prominent ones [are] advocating doing something about China's currency problem," he said.

China is the largest holder of U.S. Treasurys.

"Instead, Mr. Obama will meet with Mr. Xi today and give him what he wants," he said.

"That is a really good photo opportunity with an American president to take home to his political base. Don't look for anything of consequence to come out of that meeting," he said.

"Whenever we catch the Chinese at anything, they deny it, and the president lets them get away with it."

Editor's Note: Economist Warns: 50% Unemployment, 100% Inflation Possible

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Peter Morici, a professor of international business at the University of Maryland, predicted that second-quarter growth will be weaker despite May's stronger-than-expected jobs report.
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2013-29-07
Friday, 07 June 2013 06:29 PM
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