images

This week various economic indicators gave a general strength of the U.S. economy, and overall the economy is still struggling.

Market Watch reported the economy in the second and third quarters posted its best back-to-back growth in 11 years, offering fresh evidence that the U.S. entered the final three months of the year with a good head of momentum.

The government on Tuesday said gross domestic product rose at a 3.9% annual pace in the third quarter instead of 3.5%. Combined with a 4.6% gain in the second quarter, the U.S. has posted its best six-month stretch of growth since the middle of 2003.

This may be good news, but this has to be placed in context with the other economic indicators, as these reports had more sobering news on the overall strength of the U.S. economy.

Probably the most disappointing news of all the reports was the report on durable goods orders. In the month of October, capital goods fell 1.3% the second month in a row with a sharp decline.

It is still early and more analysis needs to be done before any distinct conclusions are made, but it could be a sign businesses are being more cautious, as the global economy is slowing down across the globe.

Consumers are becoming less optimistic the economy will be improve for themselves, as initial filings for unemployment topped over 300,000 for the first time in two months especially as the nation heads into the peak holiday shopping season.

Market Watch added in its report the housing market is beginning to normalize. House-price growth is moderating, but that’s mostly a sign that more homes are coming onto the market, and that investors are beginning to look elsewhere.

With mortgage rates staying below 4%, and both lenders and the government beginning to loosen the taps on credit, there should be a tailwind behind housing — so long as the jobs market doesn’t cut out its legs.

What was not mentioned in any of the reports is what will happen next year when elements of the Affordable Care Act begin to hit businesses and consumers alike.

First the beginning of the employer mandate takes effect, especially those with more than 100 employees, as businesses will have to begin providing health care coverage or pay a fine.

Individuals will face a two pronged hit as the individual mandate takes hold, as consumers will face a fine if they do not have health care coverage, plus you have to add in the rise of health care premiums.

Then the Obama administration will begin releasing well over 3,000 new regulations which will have large impact on businesses of all sizes.

For the average American the economy is not improving, it’s just becoming harder for them and their families.