Just as the economy is showing signs of emergence from a lethargic recovery, economist Nouriel Roubini is warning Americans should lower their expectations for growth in the second half of the year.
No less than the Wall Street Journal heralds the good economic tidings as the lead news item in Thursday's print edition.
"After years of struggling to shed debt, Americans are finally gaining enough confidence in their finances to step up borrowing for autos, homes and other goods — a shift that could boost the economic recovery," the Journal declares.
The paper cites lots of happy news, including a decline in consumer debt of $78 billion last quarter, down to $11.15 trillion, the lowest level since 2006, before the financial crisis.
Yet in an illustration of the complexity of reading economic tea leaves, noted economist Nouriel Roubini seems unimpressed with newly strengthened household finances, pointing out on his Twitter page on Thursday:
"Philly Fed much worse than expected; it dashes the view of those – including GS – expecting significant US growth acceleration in H2." A later afternoon Tweet is more specific, forecasting "2013 GDP growth at a mediocre 1.6% but 2014 at 2.5%."
