The recovery is less vigorous than expected

There is a hole of air in the US economy. The recovery is less vigorous than expected. The public is not satisfied - only 40 of Americans approve of the economic action of President Obama, according to a recent CBS News poll. The Democratic Party could lose control of the House of representatives in November, warned last week the White House spokesperson, Robert Gibbs.

Recent indicators have been disappointing - the deficit of trade balance in may, continuation of the decline in sales of retail in June. The first announcements of results for the second quarter, the last week, has been mixed. Alcoa and Intel have recorded good performance, but Google has done less that expected, General Electric, Citi and Bank of America had been punished. The Thomson Reuters/University of Michigan consumer confidence index fell in July to its lowest since August 2009. Prudent, the Federal Reserve reduced its growth forecasts for 2010 in a range between 3 and 3.5 per cent, while it was in may on 3.2 to 3.7.

Criticism

The rate of unemployment, income to 9.5 last month, continues to resist. Two million Americans have lost their rights to unemployment insurance in recent weeks and seven million are without work for more than six months. "A weak labour market, combined with a disappointing consumer spending, leaves more hope in the trade balance and the stocks to find signs of strength in the economy," writes Stephen Ricchiuto, Economist at Mizuho Securities USA. However, he explained, the trade deficit increased in May and small businesses want more continue to reconstruct their stocks. In addition, the industry - which was far from recovery - sees activity faltered again.

While the White House had any place to celebrate the last days of the adoption of the Act on the financial regulation, of the record fine of the Securities and Exchange Commission against Goldman Sachs and the judgment of the leak of the BP well, she had to revise his plan of walking. The economy is again the priority number one of the President. The Act on the climate, for example, will be more modest scale.

Barack Obama comes particularly to initiate a campaign called "recovery summer" in which it is the country - a grid plate it was week last in Michigan - to explain the benefits of its fiscal stimulus plan, the Recovery Act of February 2008. This $ 787 billion plan brought in part growth in the second quarter (of which the NET will be published at the end of the month) to 3.2 and helped to save or create 2.5 and 3.6 million jobs, supports entourage of Obama.

But not enough to convince the business community. Several patterns (Verizon, GE, News Corp,...) have complained about. The Chamber of commerce, very hostile to the President, calls for tax cuts and critical the number of new regulations that will weigh on business. It is opposed to any new plan idea of fiscal stimulus, as the Republicans, who want to avoid worsening the budget deficit.

Offensive against Republicans

At the time, the President found a tone of campaign. In his speech broadcast on the radio this weekend, Barack Obama fired red ball on the Republicans. By making the filibuster, they "threaten the economic recovery and impede progress," he said. It still a few months to convince before the mid-term elections where all of the House of representatives and a third of the seats of Senators and Governors of States will be renewed. Or lose, like Bill Clinton before him, the control of the House and the Senate.