Latest Economic News & Information

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Current Economic News

Fitch Rates Chattanooga, Tennessee’s 2008 GOs ‘AA’; Outlook Stable (Business …
NEW YORK—-Fitch Ratings has assigned an ‘AA’ rating to the city of Chattanooga, Tennessee’s $45.6 million general obligation bonds, series 2008. The bonds, expected to sell competitively on Dec. 9, 2008, will fund various general government projects in the city.

Oil prices waver on skimpy crude inventory report (AP)
Oil prices wavered near three-year lows as investors weighed falling global demand and a government report showing an unexpected decline in U.S. crude inventories.

Fed: Economy darkens heading into holidays (AP)
The country’s economic picture has darkened further as Americans hunkered down heading into the holidays, forcing retailers to ring up fewer sales and factories to cut back on production.

More than 1,000 SC workers lose jobs in past month (AP)
South Carolina has lost more than 1,000 manufacturing jobs in the past month as the state’s economy continues to sour. The tiny town of Whitmire took the latest and biggest blow. The town’s only major plant, owned by sock maker Renfro Corp., is closing at the end of January, leaving 570 workers without a job.

Stocks fluctuate after Fed regional economic data (AP)
Wall Street absorbed another stream of bad economic readings Wednesday, turning modestly higher as investors shuttled between pessimism about a protracted recession and hopes that the nation might start to see some relief soon.

Research and Markets: A Company Report on Lufkin Industries, Inc: Examine Com…
DUBLIN, Ireland—-Research and Markets has announced the addition of the “Lufkin Industries, Inc. and the U.S. Oil and Gas Field Machinery and Equipment Manufacturing Industry” company profile to their offering.

Private jobs, services slump show recession toll (Reuters)
Private employers cut 250,000 jobs in November, an unexpectedly large number and the biggest in seven years, while the service sector, which powers most of the economy, posted its worst slump on record.

Governor, lawmakers continue work on budget fix (AP)
Legislative leaders and Gov. Janet Napolitano continue to negotiate a possible fix to at least part of Arizona’s huge budget shortfall.

Russian companies skirt law to fire employees (AP)
Cowed by what she called a growing campaign of intimidation, equity analyst Yekaterina Krylova finally quit her job. In submitting her “voluntary” resignation, she waived her right to any compensation — and that saved her employer a hefty payout.

Economist: More financial problems in SC next year (AP)
A University of South Carolina economist said Wednesday the Palmetto State’s financial problems have been driven by tax policy and are about to get worse as effects of the national economy’s slump show up in declining retail sales and personal income.

Next Generation Manufacturing a Winning Strategy for Wisconsin Firms (Busines…
MADISON, Wis.—-A ground-breaking study to assess the global competitiveness of Wisconsin manufacturers reveals that Next Generation Manufacturing strategies are a powerful catalyst for world-class performance and success.

Research and Markets: A Profile of Baldor Electric Company: Providing a Finan…
DUBLIN, Ireland—-Research and Markets has announced the addition of the “Baldor Electric Company and the U.S. Motor and Generator Manufacturing Industry” company profile to their offering.

NC lottery ticket sales feeling economy’s weight (AP)
Ticket sales for the North Carolina lottery are doing well but feeling the effects of the bad economy. Lottery executive director Tom Shaheen said Wednesday revenues from July through November are more than 34 percent higher compared to the same period a year ago.

Minnesota deficit expected to be ‘very, very bad’ (AP)
Minnesota lawmakers are dreading Thursday’s budget forecast. “It’s going to be very, very bad,” said Sen. Dick Cohen, the St. Paul Democrat who heads his chamber’s Finance Committee.

A look at economic developments around the world (AP)
A look at economic developments and stock-market activity around the world Wednesday: —— BERLIN — The German auto industry’s leading trade group, the German Association of the Automotive Industry, said it expects next year’s car sales to be the worst since the reunification of the country in 1990.

2008 crop has Mo. wineries popping their corks (AP)
A year after a freak spring freeze nearly derailed the Missouri wine industry, the grape gods have been kind to vineyard owners like Sarah Schmidt — perhaps too kind.

Study Concludes Extending Light Rail to LA/Ontario International Airport is F…
MONROVIA, Calif.—-A 10-month study that examined whether it is feasible to extend the Metro Gold Line Foothill Extension from its planned terminus in Montclair to LA/Ontario International Airport has been completed.

Group finds fewer toys with high lead levels (AP)
After the high-profile recalls of millions of lead-contaminated toys last year, a watchdog group said Wednesday that its tests found fewer toys with high levels of chemicals in them this year.

Sundance Vacations Honored as One of the 100 Best Places to Work in PA for 20…
WILKES-BARRE, Pa.—-Sundance Vacations is one of the best companies to work for in Northeastern Pennsylvania. The company finished twelfth in the statewide employee poll for large-sized companies .

Productivity growth better than expected in 3Q (AP)
Worker productivity slowed in the summer while wage pressures increased, but both developments were better than expected and are unlikely to raise inflation alarms at the Federal Reserve.

Additional Information On Economic News Sources

Unless a major employer decides to close the local factory where they work, economic news is best regarded by most consumers as boring, confusing, and irrelevant However, economic news that may seem immaterial or inconsequential may be a lot more valuable than individuals and communities might think. 

Economic news is generally reported by the media like CNN, Reuters, Forbes, the Wall Street Journal, and the Economist, but really comes from the monthly information generated by the Bureau of Labor Statistics, the Department of Commerce, the United States Congress and the Dow Jones Index.  This information is then applied to current situations like company mergers or foreign trade agreements and used to report news stories that can be understood by consumers, who need the information in order to invest, relocate, look for a job, manage a municipality, or just sound smart around the water cooler.
For investors, the benefit of news from the Dow Jones Index is obvious, but watching figures from the government like the Unemployment Rate is important as well.  While the Dow Jones is a leading economic indicator because it rises or falls before the economy, the Unemployment Rate is a lagged indicator and reflects the status of the economy months behind or ahead.  So, if the Dow Jones indicator is rising, the GDP is steady, and unemployment is high, it is a good time to invest.  This is because stock prices are lower and spending will be rising as people become re-employed.

Economic news also helps with the job market.  Job seekers who are mobile can look to the news to help them figure out which part of the country has the lowest unemployment and the highest standard of living.  If it is time to move, relocating to a more prosperous area of the country may be the best way to get started again.  As well, news of widespread inflation, high unemployment, and job outsourcing in your field may mean sticking out a current job situation and cutting back on consumer spending until the economy improves.
Home owners benefit from economic news as well.  Remember, the government sets the primary interest rate and adjusts it to offset inflation.  Home mortgages are tied into this rate which means that monthly payments will fluctuate accordingly.  As well, the government regulates the banks when it comes to the prime and sub-prime lending rates for homes.  Changes in policy can mean the difference between saving a home or foreclosure.  Economic news can also predict the future value of homes based on expected economic development and growth in an area.  Buying a home at a lower price during a recession is profitable when economic indicators predict the value will rise as the local economy recovers.

Economic news is also important for people who are planning to retire.  Financial planning segments will give out pointers like when to put savings into money market accounts, how to talk to a financial advisor, and where to retire.  Following advice like selling a larger home and buying a condominium may be a wise choice, especially if a new home is in an area that enjoys a higher quality of life and longer life expectancy through economic development.

City planners will notice on the news that other communities go through similar economic challenges as their own area.  Following these kinds of stories can provide insight as to how another area revived its economy by attracting new business through tax breaks or by lobbying their local or state government for a new highway to bring traffic to the town.  Any way you look at it, economic news is important to everyone and helps consumers make intelligent and money-wise decisions.

Posted in Economic Growth & Development