Auerback: US base growth is less than 2%

By Edward Harrison On Feb 25, 2014

Marshall Auerback was on CNBC yesterday afternoon talking to Kelly Evans and Steve Liesman on Closing Bell. And his read on the US economy is like mine, 1.5-2.0% underlying growth. He thinks the weak Q1 numbers are not just weather-related.

My view: Last year, the numbers were boosted by inventory builds and a credit accelerator. But wages are stagnant and that means those looking for more either implicitly expect greater releveraging, some sort of wage growth or capital spending to push the needle above 2%. I don’t see inventory builds or exports doing the job.

Video below

P.S. – Marshall, I love those pinstripes :)

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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