ECONOMICS 101: NOBODY AGREES ON ECONOMICS

1_photoBY: Adam Gavriel

With so many conflicting reports on the American economy, it’s hard to get a true read on the strength of the recovery.

A report from Reuters.com states that contracts to buy previously owned homes in the US fell for the third straight month in August; however fewer Americans filed for jobless benefits last week.

A different report showed a sharp decline in consumer prices during the second quarter of this year.

“Together, the data offers a challenge for the Federal Reserve, which wants to see more evidence that the U.S. economy is gaining momentum before it scales back a bond-buying stimulus program.”

Continued:

“The Fed last week flagged a rise in interest rates as a threat to the economy, and also said that employment and inflation remain too weak.”

Although economists believe that the housing market isn’t collapsing, it appears to be losing steam.  

The labor market, on the other hand, seems to be continuously heading in a slow by steady recovery. Last week, initial jobless claims for state unemployment benefits dropped by 5,000. This at the same time that economists believed the expected numbers in jobless claims would be on the rise.

The four-week average of new claims fell to its lowest level since June 2007.

Conflicting reports continue though, as The Commerce Department said prices for goods and services purchased by U.S. households fell in the second quarter – for the first time in four years.

“That is worrisome because it suggests demand in the economy is so weak that business have little leverage to raise prices. Bernanke has said the Fed doesn’t want to end its bond-buying stimulus program until inflation begins to trend higher.”

This marked the first decline since the first quarter of 2009, one of the darkest times since the recession began in 2007.

In such a serious time of recession, it continues to be nearly impossible to get a clean read on the U.S. economy. While the unemployment rate continues to drop steadily, it does not take into account those who have left the labor force completely, or are not actively looking for work.

With these conflicts comes no clear way of getting a solid read on the economic recovery. All we can do is put our heads down and get our feet moving on the pavement towards helping each other.

That’s why at Crossroads Consulting, we continue to roll out services that do our duty as a search agency to help you from step one, to stepping into your new office. With resume and interview preparation services, and over 50 job openings we are looking to fill today, we want to hear from you!

Our job is to help you find a career. And we hope to do that by putting the ‘human’ back into ‘human resources

Photo Courtesy of media1.policymic.com

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