Unexpectedly...to whom? U.S. stocks fell, sending the Standard & Poor’s 500 Index down for a second straight week, as business activity unexpectedly contracted in September.
“We’re seeing data that are consistent with stall speed growth,” said Tom Wirth, who helps manage $1.6 billion as senior investment officer for Chemung Canal Trust Co., in Elmira, New York. “It’s disappointing. We wanted to see acceleration.”
And the new narrative, a little late - but better late than never...what is coming; recession or mega-recession? For once the Keynesian pundits will be correct, because the answer is: both.
The Institute for Supply Management-Chicago Inc. said today its business barometer fell to 49.7 this month from 53 in August. Consumer spending in the U.S. barely rose in August after adjusting for inflation, showing the economic expansion is struggling to regain momentum.