The Biggest Dichotomy In The US Economy

View this email online | Add newsletter@businessinsider.com to your address book

		Tech Science Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Law International Video Latest Retail Wednesday, September 19, 2012 The Biggest Dichotomy In The US Economy This is really the story of the American economy right now. Manufacturing is getting creamed, thanks to the global slowdown. Housing is on the rebound, as evidenced by today's 2.3% jump in housing starts and 7.8% jump in existing home sales. The question of whether the US goes back into recession revolves around this issue, of whether the housing comeback (which produces a lot of jobs in its own right, and a "wealth effect") can counteract the global weakness and the hit to manufacturing. Kit Juckes of SocGen summed it all up: The US housing data confirm gradual re-hab, just as the Empire State manufacturing data and the UK BOE agents comments confirm the deepening global manufacturing recession. The contrast is pretty striking. We are spending all our money on things whose value is helped by QE (and on iPhones, of course). The chart below shows the year over year change in housing starts (red), the PMI Manufacturing index (blue), and manufacturers' durable goods orders (green) Read » Also On Money Game Today: How China's Mysterious Leadership Changes Work TUNGSTEN: An Inside Glimpse Into One Of The World's Biggest Gold Conspiracy Theories Advertisement CHART OF THE DAY: Morgan Stanley Expects A Horrible Finish For The Market This Year CHART OF THE DAY: The Extraordinary US Stock Market CHART OF THE DAY: The American Paycheck Buys Half As Much Gas As It Did 10 Years Ago Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

If you believe this has been sent to you in error, please safely unsubscribe.