- The Dallas Fed Texas Manufacturing Survey index for business activity fell from 10.5 in April to -7.4 in May. The worst part was that expectations were for a positive 8.5.
- The Chicago Purchasing Managers Index (PMI) Business Barometer fell from 67.6 in April to 56.6 in May, the biggest monthly drop since Lehman went bankrupt. Once again, this is much worse than expectations of 62.
- S&P/Cash-Shiller Home Price Indices hit a recession low in March. The National Home Price Index fell 4.2% in the first quarter after falling 3.6% in the fourth. Nationally, home prices are down to levels not seen since mid-2002. Also, there is only one metro area seeing positive home price trends, Washington, DC. Now how is Washington different from all other areas? Oh yeah, incomes there are more tied to government and government spending than anywhere else.
- The Conference Board Consume Confidence Index also declined more than expected dropping to 60.8 from 66 in April. Just so you know, this is an index where the value for 1985, the base year, was 100.
It would be nice if our President could get out of campaign mode and actually think about some pro-growth policies that don't just mean public sector growth. First, he should cancel Obamacare, which is already increasing costs for most consumers and increasing the cost of hiring new workers thanks to premiums that started to spiral out of control once Obama "reformed" the health insurance market by no longer allowing pre-existing condition exclusions. Perhaps announce a moratorium on new regulations and a full review of existing regulations to figure out which ones are actually needed and which are just increasing costs for businesses and depressing their ability to hire. The current weak dollar policy creates an incentive for US companies to invest overseas and a disincentive for foreign companies to invest here, how about reversing that? And this is just the tip of the iceberg of what he should do...