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.

Video below

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


Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.