July 28, 2005


Economic Reports Continue To Show Quickening Growth (Nell Henderson, July 28, 2005, Washington Post)

U.S. factories booked orders more briskly and new-home sales rose to a record high last month, the government reported yesterday, adding to other recent signs that the economy is gaining momentum.

New orders for big-ticket manufactured goods rose 1.4 percent in June, the Commerce Department said yesterday. It also increased its previous estimate of May orders for such durable goods -- items expected to last at least three years, such as computers, machinery and appliances -- to a 6.4 percent increase, reflecting in part some big aircraft orders.

Sales of new single-family homes increased 4 percent last month to an annual pace of 1.37 million, the department said in a separate report.

Other recent reports shows that consumers bought previously owned homes at the highest rate ever in June, retail sales were stronger and employers hired more people.

Every year of his presidency Mr. Bush has been portrayed as a complete failure in August--when he goes on vacation--then come back so strongly in September that you get the annual spate of misunderestimation stories. He may be closing July so well though that he'll avoid the Summer swoon.

Stocks rise in hopes Fed may ease up on hikes (ELLEN SIMON AND MARTIN CRUTSINGER, 7/28/05, Chicago Sun-Times)

Wall Street had a surge of optimism Wednesday, sending stocks higher after investors interpreted a Federal Reserve report on the economy as a sign the Fed's year-long string of interest rate increases might be nearing an end.

Wall Street was mired in a narrow trading range until midafternoon, when the Fed released its Beige Book, a survey of the business climate around the country. The central bank said the job market showed some improvement and that inflation, a major concern for the Fed and the stock market, was fairly contained

"fairly contained" being Fed code for deflation.

Posted by Orrin Judd at July 28, 2005 7:10 AM
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