Editorial: Will 'Obamalaise' Create Another Downturn?

Editorial: Will 'Obamalaise' Create Another Downturn? - Investors.com

Among the bad news:

• Businesses last month slashed orders for autos and other durable goods by the largest amount in six months.

• Industrial output dropped the most in April for any month since the start of the recovery, indicating the manufacturing sector may be rolling over.

• Jobless claims last week unexpectedly shot up and topped 400,000 for the seventh straight week, signaling that payroll growth remains soft — in fact, the pace of hiring may be slowing.

• April housing starts plunged 11%, confirming the housing industry remains moribund.

• Foreclosures last quarter accounted for 28% of all home sales — the highest share in a year and nearly six times above the normal rate.

• Consumer spending last quarter expanded just 2% after rising at a 4% clip in the fourth quarter.

• Net corporate profits last quarter fell 1% after rising 3% in the fourth quarter, and weaker earnings continue to act as a drag on stocks.

• The overall economy last quarter grew a lower-than-expected 1.8% vs. 3.1% in the fourth, showing gross domestic product growth is braking hard