In line with low aggregate demand:
As mentioned above, real per-capita annual disposable income dropped materially (by $74 per annum). At the same time the household savings rate was reported to have dropped by -0.1% from a sharp downward revision (-1.2%) to the prior quarter. It is important to keep this line item in perspective: real per-capita annual disposable income is up only +7.11% in aggregate since the second quarter of 2008 — a meager annualized +0.77% growth rate over the past 36 quarters.
Historically, when employment growth drops to current levels the party’s over?
States with economies tied to agriculture suffering
OMAHA, Neb. – The economies of Nebraska, Iowa and South Dakota logged the worst performance in the U.S. in the beginning of 2017, with economic output declining in all three states, according to a report from a federal commerce bureau.
Data from the Bureau of Economic Analysis shows that from January through March, Nebraska’s economic output declined by 4 percent from the final quarter of the previous year, making it the worst of any state. South Dakota ranked second-worst with a 3.8 percent decline, followed by Iowa with a 3.2 percent decline.
The bureau is a federal agency from the U.S. Department of Commerce, the Omaha World-Herald reported. It measures a state’s “real” gross domestic product, which is the market value of goods and services produced in-state.
Creighton University economist Ernie Goss conducted a survey of rural bankers earlier this month that shows a dimming outlook for the broader region as the year continues.
The bureau’s report said that economies most closely tied to agriculture are suffering the worst. It said that 43 states and Washington, D.C., saw growth in the first three months of the year when compared with the last three months of 2016.