The Economy
One economic report released last week indicates the manufacturing sector is still in a sharp recession - and it is likely to get worse based on announced month long closings of auto plants in January. Looking ahead, manufacturing is in for a number of troubled months. And, Leading Indicators fell again, pointing to continuing decline in the U.S. economy. Mortgage stats indicate new home buyers have not yet emerged in response to lower interest rates; however, existing mortgages are being refinanced rapidly. The FED reduced rates further (to a historically low level) due to its view that the economy is worsening while inflation pressures have eased.
Overall: there is no good news at the present time – only hope that the economy will turn around in response to the expected stimulus by the new administration.
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