Consumers are healthy?

CEOs discuss the increasing likelihood of a recession .   But, they claim, the consumer is still healthy!

NEW YORK (Reuters) - U.S. companies are growing more concerned about the prospects of a recession in the year ahead for the first time since the end of the financial crisis.

So far this year, the number of companies whose executives have mentioned recession concerns to analysts and investors is up 33 percent from the same period a year ago; the first such increase since 2009. Some 92 companies have discussed a U.S. recession in their earnings calls, according to Thomson Reuters data.

That gloomy talk highlights worries that growth in the world's largest economy may be coming to a halt. Gross domestic product grew 0.7 percent in the final quarter of 2015, down from 2 percent in the third quarter, while double the number of companies are cutting or flat-lining their capital spending in the year ahead, according to Reuters data. The benchmark S&P 500, a leading indicator of economic strength, had its worst January since 2009 as oil tumbled below $30 a barrel and remained near 12-year lows.

While nearly all companies that have discussed recession say that U.S. consumers continue to look healthy, many are growing concerned that the steep declines in energy prices and job cuts in the industry are going to bleed into the larger economy. Overall, economists expect the U.S. economy to grow 2.4 percent in 2016, according to a Dec. 30 Reuters poll.

How healthy is the consumer?

The BEA report from four days ago tell us. Person al consumption contributed 1.46 points of growth, and that was .81 from services and .53 from goods.  Of the service consumption, health care was the largest growth, at .43.   Hence a full 1/3 of consumer growth was Obamacare and Obamacare taxes.  So, I suggest the CEOs actually take a look at the BEA report, and quit taking the summary.