With deficit spending running at about 7% of gdp modest growth should continue, with the ‘hand off’ coming when private sector credit expansion kicks in, which could be a while.

Karim writes:

Slowing, but still firmly in expansionary mode.
15 industries expand, 2 contract, 4 unch.

What respondents are saying…

June May
Composite 53.8 55.4
Activity 58.1 61.1
Prices Paid 53.8 60.6
New Orders 54.4 57.1
Employment 49.7 50.4
Exports Orders 48.0 53.5
Imports 48.0 56.5

2 Responses

  1. the quoted comments all reflect a bit of Yankee optimism; with private savings declining as we speak, some nasty surprises could easily unfold

  2. Yes, but on the financial front, is the GFC behind us, or are there more shoes to drop? Still lots of questions about banks, for example.

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