The latest economic data for the U.S. has included troubling signs that the country’s economic recovery is slowing, and fears over stagnation were stoked by a sharp slowdown in job creation, according to Bloomberg. The disappointing string of data comes as is the government is facing a record $1.6 trillion federal budget deficit that could limit official’s ability to offer stimulus to the economy. Stephen Stanley of Pierpont Securities and Michael Feroli of JPMorgan Chase had previously forecast gross domestic product of 3.8% and 3.3%, respectively, in 2011, and those figures are now at 2.9% and 2.4%, respectively.
Feroli offered his confidence that the economy will “do better in the second half,” but he cautioned, “The concern is that there’s enough weakness that could feed on itself.” Stanley also admitted,” I’m starting to get worried,” adding that he feels the economy’s “animal spirits are fragile.” The duo was part of an aggregated forecast of economists’ in a Jan. 13 survey that projected 3.1% growth for the U.S. during 2011, and other economists from that group have also shaved their growth forecasts. Austan Goolsbee, the chief economic council to the President and Chairman of the Council of Economic Advisers said after the labor report, “No doubt we face some headwinds.”