yea... my America is not in Kenya...
Index forecasts weaker growth
Updated 6/27/2012 2:45 PM Comments
The June update of the USA TODAY/IHS Global Insight Economic Outlook Index shows real GDP growth, at a six-month annualized growth rate, slowing to 1.9% in June and July and then increasing to 2.3% in November. While employment, housing (mostly the multifamily sector) and consumer spending are slowly recovering, concerns about the Eurozone and world growth continue.
Sponsored LinksThe index predicts future real GDP growth (gross domestic product, adjusted for inflation) based on 11 leading economic and financial indicators.
Three of the 11 indicators were positive in June, down from five in May.
Positive indicators include hours worked, building permits and the real money supply, all of which increased.
Negative indicators include declines in real capital goods orders, stock prices, ISM export orders, the yield curve and light-vehicle sales. Also negative were increases in the AAA corporate bond spread, seasonally adjusted crude oil prices and the real federal funds rate. This model assumes it can take 12 to 15 months for changes in the real federal funds rate to affect economic activity, so it uses the October 2011 – December 2011 rolling average to forecast real GDP in November 2012.
