Hi fellow Entrepreneur,
Yes, the Obama administration said things would get better in March and April… but that is not what happened. It wasn’t even close to what happened!
The National Association of Home Builders/Wells Fargo housing market index posted its biggest monthly jump in five years in April. The index rose five points to 14 and is the highest it’s been since October of 2008. The only problem with that is that it takes an index reading higher than 50 to indicate positive consumer sentiment about the housing market. A score of 14 means that the housing industry is still in crash mode.
To prove it, here’s the other numbers that go with the Housing Index:
The Commerce Department reported that construction of new homes and apartments fell 10.8% in March to a seasonally adjusted annual rate of 510,000 units. Obama administration economists had anticipated a decline to only 550,000 units. The largest part of the decrease was due to a drop in multi-family units… the ones needed most in a poor economy. Single-family construction was flat for the month of march. But, since building permits fell another 9% to a seasonally adjusted pace of 513,000 units, you can look for that to fall again in April’s numbers.
The bad news continued for the Obama administration.
On Tuesday, April 14, the Labor Department reported that the producer price index, which tracks wholesale prices, fell by 1.2% in March. This time the drop was largely due to a 5.5% decrease in the cost of energy goods. Economists had expected only a 0.1% decline; so the news, while good for the consumer in the short term, was very bad for the state of the economy and any hope of a quick recovery.
Continuing the bad news, the Commerce Department reported that retail sales dropped 1.1% in March compared to a newly revised 0.3% increase in February. It was the biggest decline in three months. Obama administration economists had anticipated retail sales to actually rise 0.3% in March.
Following the downward trend, the Commerce Department also reported that total business inventory decreased 1.3% in February. This was the sixth straight month that factories, retailers and wholesalers sought to cut their inventory. Another good sign that things are only getting worse… wouldn’t you say?
The Labor Department seemed to agree and reported Wednesday that consumer prices fell another 0.1% in March after increasing 0.4% in February. As seems the trend, the Obama administration economists had expected the Consumer Price Index to rise 0.1%… total oposite of what it did. When we compare this to a year ago when consumer prices fell 0.4%, This is the first 12-month continuous decline since 1955.
The Federal Reserve reported Wednesday that industrial production at the nation’s factories, mines and utilities fell a seasonally adjusted 1.5% in March. This too was the fifth straight monthly decline and much larger than the 1% decrease our government economists had expected.
Upcoming on the economic calendar are reports on the index of leading economic indicators on April 20, existing home sales on April 23 and new home sales on April 24.
Are you seeing a wishful trend by the Obama administration?
Even so, am I worried?
NO!
Should you be worried?
That depends…
If your life depends on a J.O.B., then yes you have a lot to worry about. It’s very apparent to even those that are not in the know that the economy is not going to get better any time soon and that there are going to be a lot more layoffs and bankrupt companies still to come before things begin to improve.
If you are totally dependent on someone else for your job and your income, then you are not safe and your nights of worry are going to continue for some time in the future.
On the other hand, if you have your own home business for part or all of your income… then you have little to worry about and have nothing but success in your future.
You see, it’s precisely in these troubled times when the individual home business is the most successful and has the largest growth in history. This is where the little guy can literally control the world.
See what I mean by checking out the totally FREE Home Business training videos and multi-income stream system at:
www.SpidersMarketingWeb.com
You’ll rule the day when you do!
