Goldman is out with a depressing way to start the week: Bearish commentary on the state of the economy and a negative call on this Friday’s big jobs report.
There are two key points:
The first is that Goldman’s own proprietary economic indicator shows a clearly decelerating US economy.
Ths economic deceleration you can see here.
Photo: Goldman Sachs
Then Hatzius says that this Friday’s jobs report will be weaker than the 165K new new jobs created that analysts expected. Hatzius sees just 125K.
Basically because we still have a lot of winter payback.
Most of the job surge over the last few months came in cold states (suggesting that the weather played a huge impact) and we really haven’t seen a payback, as evidenced that the dark line hasn’t fallen sharply below the light line (for warm states).
Enjoy your week!