Mixed Data Yields Cloudy Outlook
Thursday, November 29, 2001
foxnews.com
WASHINGTON — The economy, declared in recession just days ago, is showing mixed signals for the future: Orders for big-ticket goods are up by the largest amount in at least nine years, but layoffs are rising, too.
The latest batch of economic data released Thursday provided something for both optimists and pessimists regarding the prospects for an economic recovery.
Optimists pointed to the big-jump in new orders for manufactured goods as an encouraging sign the downturn will be short and shallow. Pessimists worried that the surge in layoffs, along with expectations of higher unemployment, could make consumers retrench, pulling the economy deeper into recession.
Despite such mixed opinions, many analysts agree that the economy is extremely fragile and believe that the Federal Reserve will probably cut interest rates for an 11th time this year at its next meeting on Dec. 11.
In a rare bright spot for the nation's battered manufacturing sector, orders to U.S. factories soared 12.8 percent in October, reflecting stronger demand for airplanes, cars and computers, the Commerce Department said. It was the first increase since May and the largest since the government began keeping records based on the current classification system in March 1992.
On Wall Street, the news helped to lift stocks. The Dow Jones industrial average rose 117.56 points to close at 9,829.42. |
