Inventory builds and subpriming of auto market show problems in US

Today’s commentary
2014 is a transition year for the United States because 2013 was the breakout year for growth. In the third and fourth quarters of 2013, US real GDP statistics showed annualized growth of 4.1 and 3.2% respectively. Official statistics also say that unemployment is at 6.6%, near the point where the Fed is to switch to a tightening bias. On the back of this growth, the Federal Reserve has begun tapering its large scale asset purchases. But underneath these numbers are points of weakness.
And the weaknesses are what make 2014 a transition year. It is not clear that growth is powering ahead. Just the opposite, I believe Q3 marked the peak in growth and that growth in the US will decline from here. For me, the two biggest points of weakness have been inventories and wage grow...


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