The economy's modest growth in the fourth quarter isn't exactly bringing rave reviews from economists. A sampler (via Real Time Economics):
-Muddling through is the best term that can be applied to the current economic environment, even though the risks of a downturn have been reduced. By the same token, the data shows that there is no real risk of an upside surprise either. -Steven Ricchiuto, Mizuho Securities-This is less impressive than it looks.-Ian Shepherdson, High Frequency Economics
-We have been talking for several years now about a slower growth, lower return environment. Today's data only reinforces that position and that belief. -Dan Greenhaus, BTIG LLC
-The softer-than-expected performance in the holiday quarter signals both that holiday buying season was not as ebullient as Black Friday weekend sales suggested and that the economy remains challenged by significant structural headwinds. -Kathy Bostjancic, The Conference Board
-It is clearly premature to conclude that the economy is off and running. The outlook appeared to be improving at this time last year, only to be derailed by an unexpected surge in commodity prices and fallout from the Japanese earthquake. It would not take much to repeat the pattern this year, since business and consumer sentiment remains brittle from the effects of the Great Recession and events in Washington. -Scott Hoyt, Moody's Analytics
The chart below, courtesy of Calculated Risk, illustrates an economy that struggling to regain its footing. The shaded area at the right covers the recent recession period. Each bar covers a quarter.