Auerback: US base growth is less than 2%


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.

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

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