Seven reasons why the US economic recovery is hitting a wall

  • close
    The US economic recovery is hitting a brick wall.
    View Caption
  • About video ads
    View Caption

It’s been declared countless times in the mainstream media that the economy has recovered. The US is out of recession and good times are back again. Yet, there is plenty of data to support that this is not the case. Seven of the top warning signs that the US economy may be hitting a wall are highlighted below.

According to Irwin Kellner, chief economist at MarketWatch:

1. Both consumer confidence and sentiment have fallen unexpectedly.

2. After-tax personal incomes adjusted for inflation have flattened.

3. Sales of both new and existing homes took a surprising stumble.

4. Orders for most durable goods are down.

5. Manufacturing has slowed.

6. Jobless claims are up.

7. Fourth-quarter GDP growth came largely from a slower pace of inventory liquidation, not from an increase in consumer spending.

8. And, as a matter of fact, consumer spending weakened last quarter.

Kellner also points out that consumer confidence has dropped to a nearly 30-year low, new home sales hit record lows, existing home sales are at a seven-month low, and even unemployment claims rose six of the past eight weeks.

In case you need an updated dose of cold, hard reality about the economy, this MarketWatch coverage of the recovery running out of gas is a worthwhile read.

Add/view comments on this post.


The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.