Business

Business Will-o'-the-Wisp.
by Milota Sidorova

According Mark Vinter, economist at Wells Fargo there was no other possibility than a slow recovery. Fed’s representatives suggested that the highest unemployment for the past 26 years that reached over 10.2 percent last month could raise and persist up the the mid-year 2010. Analyst forecasted the unemployment index can reach 11 percent before the end of this year. However, there were some „good“ news this week. The American Labor Department reported that comparing to the last week jobless claims fell by 35,000 to final 466,000. To sign there is actual growth in employment jobless claimes would have to lower down to 400,000 level for a longer time period.! It can be bit harder since the Congress passed the legislation dramatically rising up unemployment taxes. This step is hitting the small and middle class businessmen that actually create up to 60 percent of all the jobs. The legislation will rise the costs on employees and the consequences may be – cutting of payment bonuese and slowing down the hiring. Americans seemed to spend more last week. The Consumer spending index gained 0.7 percent after 0.6 percent drop in September. The last significant increase of 1.3 percent was caused by summer Cash for Clunkers rebate program. People spent more on gas, food, clothes and servieces. The leading consuming products were costly manufactured goods – cars and appliances. Analysts however, don’t expect such bursting spending during next months. The slowest gain is expected around the beginning of the next year. Incomes generally rose 0.2 percent but the wages and salaries didn’t rise. Most of the gain incl! uded other benefits and interests.

related story (sgx1 6000): http://news.yahoo.com/s/ap/20091125/ap_on_bi_go_ec_fi/us_eco...

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 1:55 PM