Weak data fail to dent US businesses

[alp227]

Source: Financial Times

Economic activity in the US “continued to expand at a modest to moderate pace in June and early July”, according to the latest Beige Book survey of business conditions by the Federal Reserve.

All but one of the 12 regional Fed banks that interviewed their local business contacts reported expanding activity, albeit at a slowing pace in the New York, Philadelphia and Cleveland districts.

The report offers some reassurance that weak data recently has not dealt a catastrophic blow to business confidence. However, the business anecdotes in the Beige Book tend to be backward looking, and are likely to have only limited influence on Fed officials as they ponder whether to ease monetary policy further.

Separate data showed that new home construction in the US rose sharply in June, to its fastest pace in more than three years, signalling a tentative recovery of the housing market.

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/e9727ef2-d0d3-11e1-8d1d-00144feabdc0.html

[1StrongBlackMan]

2. Doesn't this beg the "what if" questions ...

Since business is expanding, in the face of unprecedented uncertainty ...

What if the President's Jobs Plan had been signed into law? (Though still highly top down strategies, the Plan is a stimulus to the consumer demand driving working-classes)

What if the gop signalled that it would no longer obstruct? (The uncertainty is NOT what President Obama will do, or the effect of what President Obama will do; but rather, the question of whether President Obama will be able to do or not. Either his doing or the status quo can be planned for ... what can't be planned for is the gop's continuing attacks on settled matters.)