More Evidence the American Economic “Recovery” Will Disappoint

Source: Ludwig von Mises Institute
by Daniel Lacalle

“United States industrial production was also almost flat in April, rising just 0.4 percent month on month in April, pushed by a 4 percent slump in motor vehicle production. You may think this is not that bad until you see that industrial capacity utilization came in at 74.7 percent in April, significantly below the prepandemic levels. Employment also questions the ‘strong recovery’ thesis. Nonfarm employment is still down 8.2 million, or 5.4 percent, from prepandemic levels, yet gross domestic product is likely to show a full recovery in the second quarter. These figures are important because they come after trillions of dollars of so-called stimulus and because the entire thesis of the V-shaped recovery comes from a view that consumption is going to soar. Reality shows otherwise. In fact, reality shows that retail sales showed an artificial bump due to the wrongly called stimulus checks, only to return to stagnation.” (05/27/21)