by Kurt Kallaus
Good or Bad Economy?
Is the economy strong or weak? The safe answer is – both. GDP and median income growth have remained weak, but employment and consumer spending are healthy. Manufacturing and construction hiring and wage gains have been anemic while leisure, healthcare, and business services have been energized.
Since the real estate crash bottomed in 2008 we have witnessed a below average growth cycle when combing weak industrial infrastructure with strong consumer-oriented production comprising our GDP. Historic declines in interest rates and debt service costs have sponsored a consumer spending cycle that after 7 years has returned most metrics of consumption back to previous peaks.