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| Consumer confidence hits best level since 2000 |
| 2004-01-16 |
| Consumer confidence has climbed to its strongest level since before the start of the recession, the University of Michigan’s sentiment index revealed on Friday. The index climbed more than 10 points to 103.2 in January - taking the measure to its highest value since November 2000. Americans were more upbeat both about the present economic conditions and the outlook for the future. this will affect the election, of course. it’s also reflected in the different consumer activity here and in Europe The strength of the confidence figures were not matched, however, by industrial production in the US which grew only slowly last month, according to figures released by the Federal Reserve. The rise was only a quarter of what analysts had forecast. hence the lower-dollar policy in the face of trade protectionism abroad Production was surprisingly weak in December, rising by only 0.1 per cent. Most industrial groups contracted slightly during the month with the exception of manufacturing, which expanded by 0.3 per cent. The disappointment was partly offset by an upward revision to the previous month’s data to a rise of 1 per cent. But economists said the figures were no cause for alarm. "Producers were likely taking a breather after the large gains of the previous month," Michael Burt, an analyst at Economy.com, the consultancy. "When taken in context with other encouraging signs of improving economic health, it appears that the economy is now in full recovery mode." Business inventory figures were more unambiguously positive, showing a rise of 0.3 per cent in November. |
| Posted by:rkb |
| #1 I had a conversation with a German fellow at work. He was very proud how the Germans and Dutch had figured out how to make lots of people part time so that more people had jobs. Sounded like a good plan at the time. Then I realized that you now have more people barely getting by. More people with little descrationary spending to flow back into the economy and create jobs. And it still hasn't dented the high unemployement rates in Europe. Perhaps a Socialist economy isn't the best solution after all. /sarcasm. |
| Posted by: ruprecht 2004-1-16 11:21:13 AM |