Fishkind Conversations: Latest Data Looks Worrisome, But Isn’t So Bad
Last week was not a good one for the economy, according to 90.7 economic analyst Hank Fishkind. GDP growth was just .5 percent in the 1st quarter of the year, down from already weak numbers. The stock market sold off sharply and investors moved money into US treasury bonds…where it’s safe, but lower-yield.
But Fishkind says thanks to job and population growth – especially in Central Florida – the situation is not gloomy, even though it may seem that way.
- GDP growth did slow dramatically, but job growth remains robust with no sign of slowing. At this time, the job numbers are a better representation of the reality of the economy’s performance and near-term prospects. Measurement problems plague the GDP figures.
- The current string of monthly job gains is the longest on record, stretching back to September 2010. More than 200,000 jobs have been created on average each month during this time. This is nearly twice the pace of job creation needed to absorb the increase in the working-age population.
- In many ways, this could not be a better economic environment for Florida’s economy. Moderate but sustained growth in GDP coupled with low interest rates and low inflation benefit Florida economy. That in combination with very supportive demographic trends with the baby boom generation entering retirement will produce a prolonged and strong period of growth for Florida.
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