MW: Recent data paint a picture of an economy slowing -- sharply
By Irwin Kellner, MarketWatch
PORT WASHINGTON, N.Y. (MarketWatch) -- The fledgling economic recovery appears to be running out of gas.
The fuel for this or any other recovery has to come from the consumer. Purchases of goods and services by people like you and me account for about 70% of the nation's gross domestic product, so without our help, a recovery could not last too long.
Guess what? This is exactly what seems to be happening. Retailers report that, for the most part, shoppers are few and far between.
The recent run of economic data is most compelling. Just about all of them paint a picture of an economy slowing -- and sharply, at that.
Here are just a few:
-- both consumer confidence and sentiment have fallen unexpectedly;
-- after-tax personal incomes adjusted for inflation have flattened;
-- sales of both new and existing homes took a surprising stumble;
-- orders for most durable goods are down;
-- manufacturing has slowed;
-- jobless claims are up;
-- fourth-quarter GDP growth came largely from a slower pace of inventory liquidation, not from an increase in consumer spending;
-- and as a matter of fact, consumer spending weakened last quarter.
Understand that the changes in the data above were not insignificant:
