recession

GDP Contracted -0.1% for Q4 2012!

Q4 2012 real GDP contracted by -0.1%.  Inventory investment nose dived, but was not the lone culprit for economic contraction.    Exports plunged and took -0.81 real GDP percentage points along with it.  Government spending cliff dove and hacked off -1.33 percentage points from 4th quarter gross domestic product as Federal Defense spending declined 22.2% from Q3.

Manufacturing New Orders Plunge -5.2% for September 2012

The Manufacturers' Shipments, Inventories, and Orders report shows factory new orders plunged -5.2% for August 2012. This Census statistical release is called Factory Orders by the press and covers both durable and non-durable manufacturing orders, shipments and inventories. This is the largest monthly drop since January 2009, although July showed a 2.6% increase.

Displaced Worker Report Shows Not Enough People Are Landing New Jobs

The BLS released their displaced workers survey and the results paint a dark and foreboding picture for the American worker. Of the people who lost their jobs through offshore outsourcing, plant closures, business failures and layoffs during 2009-2011, by January 2012 only 56% of them had gotten another job. These are people who held the job they lost three years or longer and there were a whopping 6.12 million people in this category.

What's more disturbing, as if that's not enough, is the age breakdown of displaced workers who were in a job three years or longer. While the job losses seem reasonably evenly distributed, those finding other jobs appear not to be, as shown in the below four pie charts.

displacedworkersage

Business Sales to Inventory Ratio Rises, Manufacturing Sales Decline -1.1% for June 2012

The Manufacturing and Trade Sales and Inventories report shows a -1.1% decrease in sales and an +0.1% increase in inventories for June 2012. Sales declined -1.1% for manufacturers, -0.8% for retailers and -1.4% for wholesalers. This is the 3rd month in a row for declining sales and this is the largest monthly percentage decrease since March 2009.

 

People Would Could Only Get Part-Time Jobs Decreased -4.38% in December 2011

December's unemployment report had a little indicator of better news. A recession indicator, those forced into part-time hours due to slack economic conditions just plummeted. Overall, people being forced into part-time jobs declined by 371,000 in a month, to a tally of 8,098,000 people.

Recession is NOT over!

The National Bureau of Economic Research, the organization which dates recessions, cannot declare the end date of this recession, according to the New York Times.

The committee plans to announce on Monday that it cannot yet declare an end to the recession that began in December 2007, several members indicated on Sunday.

The green shooters assuredly will be taking their Prozac with this news.

The Wall Street Journal:

A committee of economists at the nonprofit National Bureau of Economic Research, arbiter of when U.S. recessions begin and end, plans to issue a statement Monday with its latest assessment of the economic downturn that began in December 2007.

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