"Recovery Summer" Over: Economy To Slow Further

 Bloomberg News has a fairly depressing but not all-that-surprising article today stating that the growth of the economy may be drying up after the short ill-fated sugar rush of the stimulus. With factory orders receding and the trade deficit increasing, the United States may be in for tougher times still.

The U.S. trade deficit widened by $7.9 billion in June, the most since record-keeping began in 1992, to $49.9 billion, a report from the Commerce Department showed. Exports posted the biggest decline since April 2009.
The figures prompted some economists to reduce estimates for second-quarter growth. David Resler, chief economist at Nomura Securities International Inc. in New York, said the economy probably grew at a 1.3 percent pace. 

And expect more contractions next year when taxes increase and inventories tumble.

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