Report: There Is No Sign Of Recession: ‘Strong Consumer Spending Underscores The Economy’s Underlying Strength’

For those who think the U. S. economy is going under, a report from Reuters suggests you’re just peddling fiction.
According to official data there is nothing to worry about. We are not only not in recession, but the economy is fundamentally strong and only getting stronger.
Relatively strong consumer spending underscores the economy’s underlying strength and should further allay fears of a recession, which triggered a massive stock market sell-off early this year.

‘The consumer is back in the driver’s seat. There is no sign of recession in these data so this will put a smile on Fed officials’ faces and argues for their policy of gradual interest rate normalization to continue,’ said Chris Rupkey, chief economist at MUFG Union Bank in New York.
GDP growth was initially estimated to have risen at only a 0.7 percent rate. The economy grew at a 2.0 percent pace in the third quarter and expanded 2.4 percent for all of 2015.
Consumer spending, which accounts for more than two thirds of U. S. economic activity, rose at a 2.4 percent pace and not the 2.0 percent rate reported last month. More consumption of services than previously estimated accounted for the revision.
Though at first glance this report may sound convincing, as is normally the case with official data and the mainstream propaganda that follows, some key points have been ignored.

This post was published at shtfplan on March 28th, 2016.