Well, looks like the oil bomb from Saudi Arabia is having some significant effect in the States after all. As you may recall we warned that the lower gas prices might not be the salve many thought.
People aren’t buying big things or small things. Retail sales are down. Home construction and sales came in weaker than expected, and orders for durable goods (think appliances and furniture) have fallen in three of the last fourth months.
On top of that, businesses aren’t helping boost growth much either. While hiring has remained strong, there have been pullbacks in manufacturing and industrial production.
But the greatest headwind appears to be the strong U.S. dollar.