The latest data points -

- Housing starts plunge

- Jobless claims fall this week

- The leading economic indicator index - real economic growth is barely keeping apace of the population increase

- Mortgage applications continue their descent (it would be interesting to see the data of how many home sales over the last 12 months have been cash sales!)

One might reflect upon the persistent roller coaster-like data results of the new normal and consider it against the Fed's continuing to assertions that we are experiencing moderate to modest economic growth - with inflation too low and employment levels slowly 'moving' in the right direction and the coming taper process - oh, don't worry about that!

It seems like the old saying - 'one step forward, two steps back' is the meme for our current extended economic recovery process. 

• Second-Quarter Housing Starts Plunged at Annualized Quarterly Rate of 31.2%, Dimming the Outlook for Second-Quarter GDP 

Workers filed 24,000 fewer initial claims in the past week; the measure is just above its post-recession low.

Leading Economic Indicators Index in U.S. Was Unchanged – Bloomberg.

This chart illustrates all you need to know about the recovery.  Over four years after the trough, the leading economic indicator index is still way below its pre-GFC highs.  Moreover, the index  has only advanced to 2003 levels.  Real economic growth is barely keeping apace of the population increase.  As long as the economy remains this weak, a shock, like a Chinese recession or more Middle East drama,  can easily plunge the country back into recession.

US mortgage applications slip anew; soaring rates bite.

From ZeroHedge

Mortgage applications continue their descent and are bringing housing activity down with them.