OH, Wages Up again!

[RMNIXON]

WASHINGTON (AP) -- The economy entered the new year in pretty good shape, with most parts of the country enjoying moderate growth, businesses boosting hiring and workers getting bigger paychecks.
That mostly positive snapshot of business conditions, in a report released Wednesday by the Federal Reserve, comes as the United States continues to deal with strains from the housing slump.

"Most reports ... indicated that economic activity expanded at a moderate pace," the Fed said. The survey is based on information supplied by 12 regional Fed banks and collected before Jan. 8.

The information will figure into discussions at the central bank's first session of this year to examine interest rate policy. That meeting is Jan. 30-31.
Most economists believe the Fed probably will hold interest rates through much of 2007. The Fed has left interest rates alone since August, marking its first break in a two-year rate-raising campaign to fend off inflation.
The Fed's goal is to slow the economy sufficiently to curb inflation but not so much as to cripple economic growth.

"The economy is unfolding fairly close to the Federal Reserve's desired path," observed Brian Bethune, economist at Global Insight. The Fed survey "points to steady-as-she-goes in the (Fed) cockpit insofar as the level of interest rates and overall direction of policy," he added.

The survey dashed investors' hopes that the Fed soon might lower interest rates. The Dow Jones industrials lost 5.44 points to close at 12,577.15. The decline came after three straight days of record closes.

On the inflation front, the Fed survey said that "overall prices increased moderately. Prices for energy and a number of materials have eased and competition has kept prices for final goods in check."

The Fed regions of Atlanta, Chicago, Minneapolis and Kansas City described inflation pressures as "easing or moderating." Manufacturers in the Boston and Cleveland regions said prices for materials they use in production were mostly stable. They did, however, report some increases in metal prices.

Retail prices were steady in the New York, Atlanta and Dallas regions, but were edging up in the Richmond, Va., region, the report said.
Fed policymakers have said that they want to see core inflation, which excludes energy and food prices, to continue to move lower in the months ahead.

The survey found that businesses showed an increasing appetite to hire. Some businesses in some regions had difficulty finding qualified workers. The Boston region, for instance, reported that engineering and machinist positions were especially hard to fill and that finance and accounting workers were in great demand.

Fed policymakers have said they will keep a close eye on labor costs to make sure they do not lead to inflation.
"Despite expanded hiring, districts reported relatively moderate gains in wages," the Fed survey said.

For all of 2006, the unemployment rate dropped to 4.6 percent, a six-year low, the government reported this month. Workers' wages, which had been whittled by inflation, grew by 4.2 percent for the 12 months ending December.

Economists say wages are now growing faster than consumer prices, which should leave people with more money to spend. That is good for workers and for the economy because consumer spending is a big force driving overall economic activity.

Retailers generally reported higher sales, although automobile sales were sluggish in several regions, the Fed survey said. Manufacturing activity expanded in most regions.

Nearly all regions reported a "continued softening in housing markets," the Fed reported. High inventories of unsold new homes have led to a slowing in home building.

The housing slump was a major factor in the economy's lost of momentum throughout last year.

The Fed survey said all regions reported slow home sales, except for Richmond, Va., which saw a modest increase. Home prices fell in the Boston, New York, Atlanta and Chicago regions. Prices, however, went up in the Dallas and San Francisco regions, the Fed said.

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And Hillary throws another lamp!






Where is the Recession I ordered!

[RMNIXON]

"The survey found that businesses showed an increasing appetite to hire. Some businesses in some regions had difficulty finding qualified workers. The Boston region, for instance, reported that engineering and machinist positions were especially hard to fill and that finance and accounting workers were in great demand."


Get a degree in hard science, business, and engineering! Not social engineering and professional government slob!

[Pro Street]

And this has to do with what about the Government?

The economy is almost completely independent, as was what I (and both of you) stated when people blamed the GOP for the recession.

[RMNIXON]

I wish it were more independent......


And who wants to keep it that way?

[Pro Street]

Originally Posted by RMNIXON

I wish it were more independent......


And who wants to keep it that way?

4 years ago you would have said that the economic problems had nothing to do with anything going on in congress or the administration

[RMNIXON]

Originally Posted by Pro Street

4 years ago you would have said that the economic problems had nothing to do with anything going on in congress or the administration

No! I would have said they did not try to control what they "should not" and take credit for same.....

[Pro Street]

Originally Posted by RMNIXON

No! I would have said they did not try to control what they "should not" and take credit for same.....

english?


The 109th did nothing to help the economy.. the tax cuts?