Stats point to summer jobs, econ blues

Summer’s here, but the trading may not be easy.

Traditionally the start of June marks the usual seasonal slowdown in trading, but this year the economy — like the weather — began its doldrums months ago, and got hurt again yesterday by a batch of reports showing leaners times ahead.

The overall economy’s growth turned sluggish with the gross domestic product being revised down to an annualized rate of 1.9 percent in the first three months of this year, said the Commerce Department. The first print projected 2.2 percent growth for the quarter.

Meanwhile, the Labor Department said the number of people filing new unemployment claims swelled last week by 10,000, to a five-week high of 383,000, more than the 370,000 expected by economists.

While trading may slow down there are concerns that could ignite the markets.

“The lazy summer might not last that long this time,” said economist Jay Feldman, director of economics at Credit Suisse Securities. “Especially with Europe’s troubles hanging over markets.

“And by August, Mitt Romney will pick his running mate and the markets will take off the rest of the summer.”

Other economists said most investors intend to mark time this summer as presidential campaigning between Romney and President Obama turns into a deep-pocketed slugfest over whether Uncle Sam should spend more on the economy or slash spending sharply.

“Fiscal austerity comes at a price, whether you are talking about the US or Europe,” said Joel Naroff, chief economist at Naroff Economic Advisors.