The Economy Continues to Struggle

This isn't good news for anybody, but especially a president looking at an election in less than six months:

– 1Q GDP was revised down to 1.9% from 2.2%. The previous four GDP quarters of Obama recovery: 0.4%, 1.3%, 1.8%, 3.0%. Keep in mind research from the Federal Reserve finds that that since 1947, when two-quarter annualized real GDP growth falls below 2 percent, recession follows within a year 48 percent of the time. (And when year-over-year real GDP growth falls below 2 percent, recession follows within a year 70 percent of the time.

– Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 383,000. Claims have now risen in seven of the past eight weeks. The four-week moving average for new claims increased 3,750 to 374,500.

– ADP said 133,000 private-sector jobs were created in May vs. analyst expectations of 150,000.

– Job cuts jumped by 53% in May from April. in the United States,according to a report by consultancy firm Challenger, Gray & Christmas. CNBC also notes “that employers announced plans to cut 61,887 staff from their payrolls in May, 67 percent more than in the same month of last year. The figure represents the most job cuts since last September.”

– The Rasmussen Consumer Index find that 59% think the U.S. is currently in a recession.

Obama's economic policies are failing...badly. I personally think the economy is poise for a big move up once the market is reassured that Obama is gone and can't do any more damage.