Paul Krugman, who just weeks ago declared that we are still in a depression and called for even more government spending, got a new dose of reality via the latest data release from the New York Fed.
The New York Fed's "Empire State" general business conditions index, a gauge of manufacturing in New York State, showed growth picked up in January, rising to the highest level in nine months.
Check out these numbers.
The overall index rose to 13.48 from a revised 8.19 in December. New orders climbed to 13.70 from a revised 5.99, while inventories also gained to 6.59 from minus 3.49.
Further,the employment gauges part of the index showed impressive strength. The index for the number of employees rose to 12.09 from 2.33 and the average employee workweek index climbed to 6.59 from minus 2.33.
Krugman, thus, has missed the turnaround.
He completely missed the signs of the ECB bailout of EZ foreign debt.
And the soaring price inflation that will be obvious later in the year, will make Krugman's fears of deflation make his other misses look minor league.
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