Category: Economic Recovery
The analysis published under this category are as follows.
Friday, March 18, 2011
U.S. Factory Production Maintains Upward Trajectory / Economics / Economic Recovery
By: Asha_Bangalore
Industrial production declined 0.1% in February, reflecting a 4.5% drop in production at the nation's utilities and a 0.4% increase in factory production. Factory production accounts for the major part of the industrial production index.
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Tuesday, March 08, 2011
U.S. Consumer Borrowing Posts Fourth Monthly Gain / Economics / Economic Recovery
By: Asha_Bangalore
Consumer borrowing advanced at an annual rate of 2.5% in January, the fourth consecutive monthly increase after posting declines during each month in the October 2008 - August 2010 and holding steady in September 2010. Of the two main components of consumer credit, revolving credit (credit card borrowing) fell 6.4% in January but non-revolving credit (borrowing for cars, vacations, durable goods, and other purposes) advanced at an annual rate of 6.9% (see Chart 4).
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Wednesday, March 02, 2011
ISM Manufacturing Forward Momentum in U.S. Factory Sector Remains in Place / Economics / Economic Recovery
By: Asha_Bangalore
The composite index of ISM manufacturing survey rose to 61.4 in February from 60.8 in the prior month. Indexes tracking new orders, production, employment, vendor deliveries, exports, and prices advanced in February. The composite index is highest since May 2004 (see Chart 4). The advances in production, new orders, employment, and exports are noteworthy.
Sunday, February 20, 2011
An Improving U.S. Economy, But Where Are the Jobs? / Economics / Economic Recovery
By: John_Mauldin
I am on yet another plane and writing, and I'll finish this letter in Phoenix. As I start, I am not sure of a theme for this week's letter, so (with a tip of the hat to my friend Burton Malkiel, who I will see at Rob Arnott's conference in a few months), today we do a Random Walk Around the Frontlines, surveying what's going on in the world. We'll start with the Fed and interest rates, look at inflation, and see how far we get. And I might get a little controversial, but long-time readers know that is not all that unusual.
Saturday, February 19, 2011
Bernanke Says Two Speed Economic Recovery Requires Different Policies / Economics / Economic Recovery
By: Asha_Bangalore
Chairman Bernanke's speech was drawn from his paper examining the nature of international capital flows prior to the global financial meltdown. The analysis is long on detail and useful for policymakers and research. More importantly, Bernanke indicated that the two speed global economy calls for different policies.
Monday, February 14, 2011
The Two Roads Out of Recession / Economics / Economic Recovery
By: Shamus_Cooke
Recent events in Washington, D.C. should provoke fear and outrage in the average American worker. As the jobs recession staggers on, politicians and labor leaders alike seem bizarrely distanced from reality, unable to advance any ideas that remotely correspond to the basic demands of those tens of millions of unemployed, under-employed, or poorly paid workers.
Tuesday, February 08, 2011
Changing Perception of the U.S. Economy Food for Thought / Economics / Economic Recovery
By: Asha_Bangalore
The 2-year Treasury note is trading around 0.78% today, from a low of 0.54% on January 28. The 10-year Treasury note yield has moved up to 3.67% from 3.36% in the same period (see Chart 1). The bond market essentially signals the U.S. economy is turning around and is most likely to establish sustained growth in 2011. A part of the bullish sentiment commenced after Bernanke's speech in the last week of August 2010 when the Fed signaled that a second round of support was on its way.
Monday, January 31, 2011
PopCon: The ‘Economic Recovery’ Lie / Economics / Economic Recovery
By: James_West
It is only human to seek reasons for optimism, and to find comfort in self-delusion. “You’re going to be just fine,” is probably one of the most frequent lies told among family members when serious injury or illness occurs. We have to believe we’re going to be “just fine”, because the alternative is too painful, and painfully unacceptable.
Saturday, January 29, 2011
Q4 Real Gross Domestic Product Shows U.S. Economy is on Expansion Path / Economics / Economic Recovery
By: Asha_Bangalore
Real gross domestic product of the U.S. economy rose at an annual rate of 3.2% in the fourth quarter of 2010 after slower growth in the second and third quarters of the year. In 2010, on an annual average basis, the economy grew 2.9% after a 2.6% decline in 2009 and a steady reading in 2008. The level of real GDP in the fourth quarter ($13,382.6 billion) exceeds the peak registered in the fourth quarter of 2007 ($13,363.5billion). Effectively, the economic recovery phase is history and the U.S. is on a path of economic expansion (see Chart 2).
Friday, January 28, 2011
Is the Fed Taking the Economic Recovery Too Far, Too Fast? / Economics / Economic Recovery
By: Clif_Droke
The latest round of economic numbers continues to impress Wall Street and is keeping hopes of a continued economic recovery alive. Many observers question, however, if perhaps the Fed is taking the recovery too far, too fast.On Wednesday, the Commerce Department reported that new home sales for December increased 17.5% month-over-month to an annualized rate of 329,000 units. This was above the consensus rate of 300,000 units and traders jumped into stocks on the news. The 17.5% increase comes following the 5.5% gain that occurred in November.
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Thursday, January 20, 2011
Luxury Brands Are Back In Style as America's Wealthy Return to Their Wears / Economics / Economic Recovery
By: Money_Morning
Jason Simpkins writes:
The U.S. unemployment rate may still be high, but that hasn't stopped consumer spending from rallying. And in contrast to the darkest days of the financial crisis, when discount retailers like Family Dollar Stores Inc. (NYSE: FDO) and Wal-Mart Stores Inc. (NYSE: WMT) ruled the day, luxury brands have been doing the heavy lifting.
Indeed, bolstered by the extension of the Bush tax cuts and strong demand in Asia, luxury brands are coming back into style.
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Thursday, January 20, 2011
An Economic Recovery Unto Death / Economics / Economic Recovery
By: Clif_Droke
In the Bible there is a reference to a “sin unto death.” In the realm of U.S. economic policy a situation is developing that could easily lead to a “death” of the current recovery. Ironically, this brewing economic destruction is springing from the same policies that are responsible for the recovery (call it a “recovery unto death”). These policies are supposed to lead the U.S. out of recession and into a “new tomorrow” but as we’ll discuss here, the end result is likely to be something far short of what policy leaders envision.
Saturday, January 15, 2011
Retail Sales Suggest Strong Q4 Consumer Spending / Economics / Economic Recovery
By: Asha_Bangalore
Retail sales increased 0.6% in December after a 0.8% gain in the prior month. Building materials (+2.0%), autos (+1.0%), gasoline (+1.6%), and furniture (+1.0%) accounted for the relatively large gains among the components, while purchases of food (-0.6%), electronics (-0.6%) and clothing (-0.2%) dropped. Unit auto sales count in the computation of consumer spending in the GDP report, which advanced to annual rate of 12.5 million units in December. Autos sales rose 29% in the final three months of the year compared with a 0.3% gain in the third quarter.
Friday, January 07, 2011
Will The Tea Party Congress Bring Economic Recovery? / Economics / Economic Recovery
By: John_Browne
While the markets have known for almost three months that the 2010 election delivered the House of Representatives to the tea-infused Republican Party, I did expect a greater reaction on Wall Street to the formalities of the opening sessions of Congress yesterday.
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Tuesday, January 04, 2011
The ISM Manufacturing Survey Kicks Off the New Year on a Bullish Note / Economics / Economic Recovery
By: Asha_Bangalore
The U.S. manufacturing sector closed the year on a strong footing and kicked off 2011 with bullish news on the first trading. The ISM manufacturing composite index moved up to 57.0 in December vs. 56.6 in November, the highest reading since May 2010. The sharp increases in indexes tracking new orders (60.9 vs. 56. 6 in November) and production (60.7 vs. 55 in November) accounted for the higher composite index in December. Indexes measuring employment, vendor deliveries, inventories, exports and imports declined in December but are holding above 50.0. Readings above 50 denote an expansion while those below 50.0 are indicative of a contraction.