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Politics : Is Secession Doable? -- Ignore unavailable to you. Want to Upgrade?

To: Hope Praytochange who wrote (1664)	11/30/2004 2:33:32 PM
From: tejek	Respond to of 1968

Cooling Off for Winter By Rebecca Byrne Senior Writer 11/30/2004 1:00 PM EST With consumers and economists lowering their expectations for U.S. growth in 2005, strong backward-looking data were harder to appreciate Tuesday. Although gross domestic product in the third quarter was revised up to 3.9% from 3.7%, consumer confidence fell to a nine-month low in November amid concerns that the economy will not gain momentum in early 2005. Meanwhile, the Organization for Economic Cooperation and Development reduced its U.S. growth projections for next year to 3.3% from 3.7%, citing the rapid jump in oil prices. "Business confidence has fallen back to just above the historical trend in the United States and Europe, dashing hopes that GDP would keep growing above trend over the next few months," the Paris-based think tank said in a report. "Compared to cautiously upbeat assessments that could be made even two months ago, this turnaround has been a source of disappointment ... prompted in large part by a surge in oil prices that has depressed real incomes as well as confidence in the OECD countries." In the third quarter, economic growth was fueled by a 5.1% increase in consumer spending, as automakers aggressively stepped up incentives. But consumer confidence faltered in November, with the Conference Board's index slipping to 90.5 from a revised 92.9 in October. While a drop in confidence doesn't always lead to a decline in spending, it isn't a positive sign. Analysts had expected the index to rise to 96, as stock prices and the job market appeared to be improving. Lynn Franco, director of the Conference Board's Consumer Research Center, said consumers' assessment of current conditions is holding steady and intentions to spend for the holiday season are up from last year. "The outlook for retailers is mildly encouraging," she said. "But looking beyond the upcoming holidays, the continuing erosion in expectations suggests consumers do not feel the economy is likely to gain major momentum in early 2005." continued.................. thestreet.com