The good news is that US economic growth is up a bit. The bad news is that it will not last, especially once the full impact of federal budget cuts make themselves felt

Economic forecasters exist to make astrologers look good. Most had forecast US growth of at least 3 percent (on an annualized basis) in the first quarter. But as we have learned (from the Commerce Department’s report) it grew by only 2.5 percent.

That’s better than the 2 percent growth last year and the slowdown at the end of the year. But it’s still cause for serious concern.

First, consumers won’t keep up the spending. Their savings rates fell sharply — from 4.7% in the last quarter of 2012 to 2.6% from January through March.

Add in March’s dismal employment report, the lowest percentage of working-age adults in jobs since 1979, and January’s hike in payroll taxes, and consumer spending will almost certainly drop.

Median household incomes continue to decline, adjusted for inflation. Another report just out shows that consumer confidence fell in April.

Second, the recovery continues to be wildly lopsided. The only thing really keeping it going is the rip-roaring stock market. But the stock market only boosts the wealth of the richest 10 per cent of Americans, who own 90 per cent of stocks (including tax-efficient retirement accounts).

But no economy can maintain momentum just on the spending of the richest 10 percent.

Third, American exports can’t possibly pick up the slack. In fact, they’re dropping. Europe is falling into recession because of austerity economics. Japan is still a basket case. China’s economy is slowing. Much of the developing world’s economy is dependent on exports to the developed world – so don’t hold your breath for developing countries to bail us out.

So what is Washington doing? Worse than nothing. It has now adopted the same kind of austerity economics that’s doomed Europe — cutting federal spending and reducing total demand. And the sequester doesn’t end on September 30. It takes an even bigger bite out of the federal budget next fiscal year.

Earth to Washington: the economy is slowing. The recovery is stalling. At the very least, repeal the sequester.

You don’t have to be an astrologer to see the dangers ahead.

Robert B Reich is Chancellor’s Professor of Public Policy at the University of California at Berkeley. He was Secretary of Labor in the Clinton administration, and was named one of the ten most effective cabinet secretaries of the last century by Time Magazine. His latest book, Beyond Outrage, is now out in paperback. This post first appeared on his blog