Just read my March 8 issue of the Kiplinger Letter. According to the letter, the sequester will last through at least September (end of the fiscal year) and maybe into 2014. It also suggests that “a short government shutdown later this month seems in the cards.” These will cause GDP growth to slip a bit but the Kiplinger Letter continues “fortunately, there’s some vigor elsewhere: a modest lift from business spending spurred by strong corporate profits, interest rates near rock bottom plus easier access to bank credit and higher stock prices. Also encouraging investment: firming auto demand and housing on the upswing. Momentum will pick up in the second half of the year, for a 4% annual gain”.
Doesn’t sound horrible. But, there have got to be numerous defense contractors and other companies dependent upon government spending that are or will be hurting and I know this must affect many of our fastener industry brethren. Then I look at the stock market and I see it has been going up week after week after week. My daughter is in her early twenties and while discussing the economy recently she asked/stated , “..but isn’t the economy really bad right now?” (…)
