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Weekly Economic Update|Week of April 7th, 2008 Episode
The latest reports add more evidence that a recession started in January. Nonfarm payrolls fell by 80,000 in March for the third straight decline and initial unemployment claims jumped 38,000 for the week of March 29 to a year and a half high. News was not much better for the nation's goods producers as both construction spending and factory orders fell in February. The one positive report released last week showed that the ISM index increased 0.3 points to 48.6, though still below 50 which signifies a contracting manufacturing sector. In addition to the bevy of negative reports, Federal Reserve Chairmen Ben Bernanke admitted that "It now appears likely that real gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly." Despite the bad news about the economy released last week, all three major stock indices grew by at least 3% driven in part by a plan released by the U.S. Treasury to help alleviate the current financial market crisis. Most analysts expect the Federal Open Market Committee (FOMC) to lower the federal funds rate target when they meet at their next meeting on April 29/30.
[ Mon, 07 Apr 2008 00:00:00 GMT ]
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