Ball State Economist Says Economy Slowing
Ball State University Economist Mike Hicks says we may be headed for another recession.
Hicks says the economy is slowing. This follows the release of second quarter growth results for the GDP or Gross Domestic Product. The U.S. Commerce Department says the GDP grew at a 1.5 percent annual rate in the second quarter. It had grown at a two-percent pace from January to March. GDP for the fourth quarter ose from 3.0 percent to 4.1 percent. The second quarter's growth rate was the slowest since the third quarter of last year.
Hicks says in simple terms that the growth in the size of the economy in terms of products and wages are growing less quickly than inflation. Hicks, director of Ball State's Center for Business and Economic Research says he expects next week's job data to reinforce the trend. Hicks expect nationwide unemployment to rise. He says these are signs the economy is slipping back into recession.