Leading U.S. Economic Indicators Index Declines 0.3%, More Than Estimated

Source: Bloomberg

By Bob Willis

April 20 (Bloomberg) -- The index of U.S. leading economic indicators in March fell more than forecast, indicating any recovery from what may be the longest recession in the postwar era is still many months away.

The Conference Board’s gauge fell 0.3 percent after a 0.2 percent drop in February that was smaller than previously estimated, the New York-based research group said today. The index points to the direction of the economy over the next three to six months.

Rising unemployment and tight credit mean recent gains in consumer spending, the biggest part of the economy, will probably not be sustained, extending the contraction well into the second half of the year. The report cautions that Federal Reserve and Obama administration measures to boost the financial system may not immediately pay off.

“It isn’t indicating any kind of quick uptick in growth,” said Dean Maki, co-head of U.S. economic research at Barclays Capital Inc. in New York. “We are looking for a recovery that is significantly less robust than what is typically seen after deep recessions.”

The index was forecast to decline 0.2 percent, according to the median of 51 economists in a Bloomberg News survey, after an originally reported decrease of 0.4 percent the prior month. Estimates ranged from a drop of 0.7 percent to a 0.1 percent gain.

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The government does it for student loans, they should do it for mortgages, cars, etc.

We tried bailing out the banks and they horded our money and jacked up our interest rates.

Now it's time to bypass them.

They are still not lending as was hoped, and they've jacked up interest rates so high that minor purchases that might have been charged, will be postponed or never made.

The banks created the monster, fed the monster, and now they sustain the monster, all at the expense of the American taxpayer. Steps need to be taken immediately to force the banks to work toward a common goal, instead of fueling the issue.