We had a fair amount of US economic news today, all of it confirming a slight slowdown in the economy.
The estimate of 1Q/2012 GDP growth was revised down from 2.1% to 1.9%
First time claims for unemployment rose slightly, the 7th time in the last 8 weeks
The estimate for growth in consumer spending, a bright spot for the economy was revised down to 2.7% from 2.9%
“The Institute for Supply Management-Chicago business barometer declined to 52.7 from 56.2 in April, falling short of economists’ forecasts for a modest gain to 56.5. (CNBC, as is the rest of the data on this page.”
If Europe keeps slowing and uncertainty remains at a very high level the US will likely slow further. China, on the other hand, is working to ramp up their economy and as a centrally planned economy they can do that. Unfortunately, Europe is China’s biggest trade partner. Brazil continues to cut interest rates in order to stimulate their economy too.