According to an article by Newsweek's economics editor Dan Gross, Macroeconomic Advisors says the economy is growing at 2.5%. That would be surprising, since manufacturers' orders for durable goods have been down 25% when compared to last year for the first two months of this quarter. If manufacturers aren't ordering more goods, they aren't driving an economic recovery with any legs to stand. The June report will be out on Wednesday.
What It Means to You
Based on the comments I get from readers of this blog, most of you don't feel that the recession is over, either. That's to be expected. Most recessions end long before it feels like it. Unemployment continues to increase even after a recovery starts.In this case, it is wise to act as if the recession will last a little longer. Although the economy needs consumer spending to grow, your personal finances need continued caution until economic indicators like the Durable Goods report and the GDP report signal the recession is actually over.
Of course, that could be by the end of this week.
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