The ECRI’s weekly gauge on economic growth fell to a 43-week low of 124.1. This was off sharply from 125.6. The index’s annualized growth gauge fell to a 50-week low of 0.4%, down from 5.1% last week.
The ECRI’s May Future Inflation Gauge also declined to 98.9 from 101.8 in April. ECRI Managing Director Lakshman Achuthan says it’s clear there are little inflationary pressures in the current environment:
“With the USFIG falling to a five-month low, underlying inflation pressures appear to be ebbing”
After months of denying the potential of a double dip, the ECRI’s own indicator now appears to be forecasting exactly that…..