This blog will be about all kinds of current business subjects relevant to American business and economy. It will include interesting stories for the pertinent day or week.
Income was reported down .1 percent today, as opposed to an expected .1 percent rise. This pre-announced expected rise boosted consumer spending .7 percent in July to hold at a steady .2 percent. Despite this decrease, consumers reportedly grew more optimistic (how was this conclusion reached?). Consumer spending accounts for about 70% of U.S economic activity so it is important to closely watch these measures to understand the GDP growth and the economy's growth. Changes in the index of consumer confidence will yield changes in consumer expenditure, affecting economic growth.
Everyone is nervously talking about whether or not the economy will spin into a deeper recession, eagerly watching Europe and the the Eurobanks to see what they will do.
September payrolls report is due next Friday, cluing us into the jobless rate, which is currently at a very high 9.1% (Obama's biggest nightmare).
Stocks have been falling and bond prices have been rising tremendously as everyone is running to invest their money in safe options rather then the risky,volatile stock market.
Until next time,
Arielle
