WASHINGTON (Reuters) — Manufacturing slowed in February and consumer spending was flat for a third straight month in January, new economic data showed on Thursday, suggesting the economy lost more momentum than expected early this year.
……the spending and factory data cut into the optimism generated by a recent decline in the unemployment rate, and suggested rising energy prices were taking a toll.
The politicians jump on every statistical bump as proof that their programs are working. But everybody else should understand that the U.S. is in the midst of major consumer and banking de-leveraging. With China cutting its growth outlook daily and Europe a basket case, where will the growth come from to continue the recovery in the U.S. Can you say QE3 and 1.5% 10-year rates?