To: Justa Werkenstiff who wrote (11985 ) 3/3/2000 10:33:00 AM From: Wally Mastroly Read Replies (1) | Respond to of 15132
ECRI/FIBER reports-both down slightly in Feb but continue to point towards higher inflation over the next several months... On a year-over-year basis, the ECRI index is up 10.3%, while the FIBER index is up 5.9%dismal.com - More excerpts: "..Analysis .. The decline in these indices in February is most likely an anomaly, and will likely resume an upward trend next month, particularly as oil prices remain at nine-year highs and the labor market remains tight. Employment growth was not a factor in this month?s numbers, as payroll employment was well below expectations. However, with the unemployment rate at just 4.1%, which is near its lowest point in 30 years, firms are finding it difficult to find qualified workers. This puts upward pressure on wages, which could eventually lead to increases in the Consumer Price Index. While tight labor markets have yet to lead to significant wage pressures due to strong productivity growth, this could come to an end as firms are forced to hire workers with fewer skills and less education. This would cause profits to fall, and put increased pressure on firms to raise prices... .. Oil prices remain above $30 per barrel, as OPEC keeps tight reigns on output and global inventories dwindle. Prices will remain above $30 per barrel until it is clear what OPEC will decide to do with production when its current agreement expires at the end of March. OPEC?s next meeting will take place on March 27. At this point, it seems clear that output will be increased. The real question is whether production will be increased enough to calm markets and allow inventories to be increased to more comfortable levels..." - Meanwhile markets resume their rockets to the sky... Investors/speculators may not have notived these indices yet <G>