Tags: Rosenberg | Ignored | Indicators | David

Rosenberg: Ignored Indicators Show How Bad It Really Is

By    |   Friday, 06 Aug 2010 12:29 PM

Economists aren’t paying attention to indicators that show the U.S. economic recovery is on shaky ground, says David Rosenberg, chief economist at Gluskin Sheff.

"The level of complacency over the economic outlook is palpable and so reminiscent of the fall of 2007, when everyone believed the Fed could navigate us into a soft landing in the face of a credit collapse," he wrote.

While Rosenberg says a fall back into recession "may well be averted," the recovery "is proving to be extremely fragile."

As for the indicators, the Economic Cycle Research Institute’s annualized growth rate stood at minus 10.3 percent in the week ended July 30.

And of the 18 industries surveyed in the ISM Index, only 10 reported growth in July, down from 13 in June, Rosenberg notes.

"Many market commentators and prognosticators still see this cycle as a classic postwar correction in GDP rather than what it really is — the aftershocks of a postbubble credit collapse," he wrote.

His remarks came in a note to clients obtained by CNBC. The commentary was written before the July employment data came out. The 131,000 drop in payrolls reinforces Rosenberg’s point.

“To the extent that we have a labor market recovery, it’s a slow one,” Nigel Gault, chief U.S. economist at IHS Global Insight, told Bloomberg.

“I don’t see anything to indicate that the third quarter will be better.”

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Economists aren t paying attention to indicators that show the U.S. economic recovery is on shaky ground, says David Rosenberg, chief economist at Gluskin Sheff. The level of complacency over the economic outlook is palpable and so reminiscent of the fall of 2007, when...
Rosenberg,Ignored,Indicators,David
228
2010-29-06
Friday, 06 Aug 2010 12:29 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved