With the euro crisis intensifying and China slowing to a limp, the global economy looks to be winding down, and now – as a result – the United States’ recovery may be in a reversal.
A report shows that May’s employment numbers are the weakest in a year, with only 69,000 new jobs added. Further, numbers for April and May have been revised significantly lower.
Jim Bianco, of Bianco Research, says the figures show we may have to rethink the direction our economy’s heading:
“But what they seem to be missing is that there is a protracted slowdown in the economy and it’s unmistakable right now, especially with the downward revisions that we saw in the previous numbers, and that they are all going to have to go back and rework their assumptions about a potential slowdown in the economy coming for the third summer in a row now, as we’ve seen before.”
All told, with election uncertainties, rising unemployment and brewing troubles abroad, Wall Street and the U.S. Treasury might do well to brace itself for an economic bump in the road, if not something worse.