With Obama’s support pretty much left to the Democratic base, how much longer will they be able to ignore how his policies are making things worse before he loses them too? And things look worse than we thought.
June’s trade deficit swelled 18.8% to $49.9 billion, the highest since October 2008. That was much worse than Wall Street predicted — or what the Commerce Department estimated in the recent Q2 GDP report. The new report, along with recent inventory data, suggest Commerce will revise down Q2 economic growth from the already-sluggish 2.4% annual rate to about 1%, according to Action Economics. Action Economics is looking for stronger retail inventory figures later this week that would imply a 1.4% GDP pace.
More Americans are already blaming Obama for the economy, so things really don’t look good for Obama this November, or for 2012.
UPDATE, by Mark Noonan: And growth forecasts have been cut as economists finally start admitting reality.
