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Economic activity increases in OctoberPosted by admin on: 2005-11-21 10:49:05 in category:
Retirement Headlines [ Print | Permalink / 0 Comment(s) ] ALEKSANDRS ROZENS Associated Press NEW YORK - A widely watched measure of future economic activity rose in October, signaling that the U.S. economy will grow this year - but at a more moderate pace than in 2004 - despite being battered by hurricanes in September. Some of that moderation may be due to a slowdown in the real estate market, which was a major booster of overall economic growth. The Conference Board said that its Index of Leading Economic Indicators, which tries to gauge future economic growth, rose 0.9 percent in October, offsetting a notable drop in September largely tied to hurricanes Katrina and Rita that swamped U.S. Gulf states and hit hard the heart of the nation's oil refining industry. The Conference Board's coincident index - a measure of current economic activity - rose 0.1 percent. The Conference Board said October's increase showed gains across many different businesses, except housing. The largest positive contributors to the leading index were initial claims for unemployment insurance and average weekly hours in manufacturing. The largest negative contributors were housing permits and stock prices, while the index of consumer expectations held steady. The leading index has slowed steadily since mid-2004. It grew almost at a 1 percent annual rate since January, compared with a roughly 4 percent expansion rate in the same period in 2004. The index has remained relatively unchanged for most of the year and is now essentially at the same level as mid-2005. According to the Conference Board, the index's recent behavior remains consistent with the economy continuing to expand more moderately in the near term. "It is definitely clear that (housing) is one area where you will see less growth," said Stephen Stanley, chief economist at RBS Greenwich Capital Markets. "It goes from being a positive to a neutral in terms of what it means for the leading index" and overall economic activity, he said. Stanley added that much of what goes on in real estate will hinge on interest rates, which determine borrowing costs for home buyers and more specifically growth in jobs and wages that shape home buying decisions. Open community websites http://www.business-business.biz http://www.investment-investment.us http://www.retirement-retirement.com Recommended sites To design your custom retirement plan. http://www.retirement-plan.us For planning an IRA rollover this is the site to review. http://www.ira-rollover.us For professional asset allocation and the wonders it can do. http://www.asset-allocation.us Managers selected to fit your needs. http://www.money-managers.us |
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