It's how the Media reports on the Economy, Stupid.
Ottawa Business Journal: A key forward-looking gauge
of the U.S. economy fell for the second month in a row
in July, according to a report Thursday, suggesting
the nation's recovery still faces a bumpy road..."The
latest decline in the Leading Index reflects a loss of
forward momentum," Conference Board economist Ken
Goldstein said in the report. "There are growing
concerns about the high cost of gasoline and milk, as
well as worries about where economic growth will come
from now that tax refunds have been spent and
short-term interest rates are rising."
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http://www.ottawabusinessjournal.com/281248160680619.php
U.S. leading indicator down again in July
By Ottawa Business Journal Staff
Thu, Aug 19, 2004 10:00 AM EST
A key forward-looking gauge of the U.S. economy fell for the second month in a row in July, according to a report Thursday, suggesting the nation's recovery still faces a bumpy road.
The U.S Conference Board said its Composite Index of
Leading Economic Indicators fell in July by 0.3 per
cent to 116. That followed a revised decline of 0.1
per cent in June. June's decline was the first in more
than a year.
Analysts polled by Bloomberg news expected a smaller
decline in July of 0.1 per cent, on average.
The index is designed to forecast where the U.S.
economy will be in the next three to six months.
"The latest decline in the Leading Index reflects a
loss of forward momentum," Conference Board economist
Ken Goldstein said in the report. "There are growing
concerns about the high cost of gasoline and milk, as
well as worries about where economic growth will come
from now that tax refunds have been spent and
short-term interest rates are rising."
In the past six weeks, the U.S Federal Reserve stepped
in for the first time in four years to raise its key
lending rate. The two hikes raised the key rate from
one per cent to 1.5 per cent.
Bloomberg News quoted Credit Suisse First Boston Corp
economist Jay Feldman as saying it's "still premature
to say the drop in the index is meaningful, but the
risks to the economy are to the downside, mostly
because of the rise in crude oil prices".