Here I offer some observations on what's been holding back the recovery.
Two of the most important sectors in U.S. business cycle fluctuations are autos and housing. For example, in the 2007:Q4-2009:Q2 recession, real GDP fell on average at a 2.7% annual rate, with autos and housing accounting for about half of this decline all by themselves.
Remember when three weeks ago, everyone was stunned as the Manufacturing ISM soared to new 3 year highs, continuing this summer's trend of blistering manufacturing, which was largely attributed to a burst of automotive production? Now, courtesy of the latest Q3 household credit report by the NY Fed, we know just how it was funded.
It’s pretty grim really. These surveys are pointing to a pretty deep recession
LONDON/SINGAPORE — Eurozone factories sank deeper into recession in December as new orders tumbled, business surveys showed on Wednesday, a sharp contrast to continuing signs of revival in China.
U.S. manufacturing reports, to be released later in the day, are expected to show activity in the world’s largest economy to have expanded modestly.
America's love affair with the car continues. Sonic Automotive, Inc. (SAH) saw both new and used car sales up double digits in the third quarter. This Zacks #1 Rank (strong buy) is an attractive value stock with a forward P/E of 11.4.