The economy continued to grind along slowly and did not show any signs of moving away from its current growth path of 1.5%, neither in an upward nor downward direction. Things not expected to change soon.
The Jobs report for July will be released Friday. The economy turned a bit more negative in July. We expect 100,000 jobs, the unemployment rate to remain the same at 8.2% and the black unemployment to increase.
Everyone was braced for bad economic news following the disappointing unemployment numbers of last week. However, the week may be ending on a good note following J.P. Morgan’s earnings report.
The 17 page Gazelle Index Report on Minority, Women and Small Business Outlook for 2012 is now available. The report analyzes the economy and the outlook for minority and women businesses.
A summary of key indicators shows that the economy is still getting weaker, despite the hope that the current slowdown would be temporary. Data on unemployment claims and retail sales are disappointing.
For the week of June 4, 2012 a summary of key indicators shows that the economy is weakening. The pace of the weaknesses very slow, but it is rather broad. The question is whether it is temporary.
Catherine Ross, Gazelle Index VP, said on CBS Morning Show, “To those who say ‘I’ve already paid for this,’ (i.e. the highway systems) my answer is, ‘Sometimes you have to pay to keep what you have,”
The slowdown has implications for minority businesses because it is caused by reductions in government spending and business fixed investment.
GDP growth slowed to 2.2% in the first quarter of 2012, based on preliminary estimates. The slowdown has implications for small businesses who supply goods to corporations and are government contractors.
The US economy is heavily dependent upon the viability of small businesses in Canada. Those businesses account for 25% of the country’s total exports and Canada is the leading trade partner to the US.