10/28/2004

Fed Reports Continuing Economic Growth

Despite many economic concerns, the U.S economy continues to grow. Surveys of business activity and data collected from the fed’s 12 regional banks gave evidence of a growing economy. “Economic activity continued to expand in September and early October,” the fed said.
At this point in time Analysts are speculating a raise in interest rate. The central bank will likely push up rates for a fourth time this year to guard against inflation pressures. The fed argues that the economy should grow at a decent pace even if there are some potholes along the way.
The fed also has speculated that the rise in oil prices have somewhat stymied the progress of the economy. However, the fed did not signal concern that this year’s oil price surge will be catastrophic enough to send the economy into a recession as it did in the 1970s and 1980s.
Other news regarding commerce and home sales were optimistic. Big ticket sales items in commerce were up a couple points, as were home sales. Some 2.7 million jobs that were lost in the manufacturing sector since 2000 have shown signs of rebound. On a final note farmers in most parts of the country were having a good year.

http://biz.yahoo.com/ap/041027/economy_12.html

5 comments:

Biancca said...

I am of the opinion that recessions and even depressions are natural occurances. The economy seems to move in a sine wave if you will. Interestingly when our country is in a recession, Democrats tend to get elected. People want things to change and they think the Democrats will make it happen. But then when eveything improves people want things to stay the same so they elect Republicans. It will be interesting to see what happens in the upcomming election.

John West said...

Ever noticed how Alan Greenspan and the Fed are always claiming steady growth in our economy. Greenspan, I think, is very loyal to Bush and is definately tweeking the numbers in his favor. The economy can look good or bad to millions of people at any one time. I think the Fed has the mind-set that the more they hammer into peoples brains how great the economy is, that it actually will be. It is somewhat of a good idea. If they actually ever said it was bad, Americans would stop spending and we really would be in for it.

Bryce Larkin said...

I believe the people thought the US economy was down because of the elections. The economy has been going up for the past year. Interest rates have been rising because of it. But, the democrats don’t want the economy to grow because they want to put their people in without a fight.

Maudi said...

I don't believe that interest rates have risen as quickly as the gas prices have. At my bank, the rates haven't even gone up a whole percent this year, but I do believe that gas has gone up quit a bit. I do think that home sales as well have gone up. All of the new growth, especially to St. George, is from new comers from outside areas as Nevada and California. They make a killing on their home sale, and then come to St. George and buy a home with all cash. The home prices have sky rocketed this year.

Dr. Tufte said...

Not really a ManEc post.