Thursday, September 23, 2004

Is Alan Greenspan on The Crack?

U.S. Economic Gauge Signals Weakness

A key gauge of future economic activity weakened for a third straight month in August as costlier oil spread worry among consumers and businesses, a report from a business research group showed on Thursday .
Its steady decline contrasts with a view expressed on Tuesday by Federal Reserve policymakers, who voted to raise U.S. interest rates for a third time in three months, that economic output has "regained some traction" since summer.

"We doubt this signals an imminent further sharp downturn in growth but the data make uncomfortable viewing and are not consistent with the Fed's view that the economy is regaining traction," said economist Ian Shepherdson of High Frequency Economics Ltd. in Valhalla, N.Y.


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