The economic data, while showing improvement, is still lackluster. Today, for instance, we learned that pending sales of existing homes declined in January, as tax incentives came to an end. Of course, abnormal weather may have played a role in this lackluster performance (and will do so again when the February tally comes in).
Yesterday we received a generally positive reading on the economy from the Federal Reserve. This reading, summarized in what is known as Beige Book, the outline of business conditions across the nation it publishes eight times per year, however, was rather cautious in tone. It confirmed what most other data also indicates – that the ongoing recovery is slow and growth is muted. The weather, again, may have limited economic activity in some parts of the country, clouding the picture.
With unemployment remaining the economy’s Achilles heel, tomorrow’s monthly employment data issued by the Labor Department will be closely scrutinized. Yesterday’s ADP report showed that, while 20,000 jobs were eliminated last month, private employment may even grow in March. In other encouraging reports, mass layoffs fell by three-quarters in February. Of course these reports don’t always follow each other so there is room for surprises. Read more...
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