Wall Street: trepidation
Article Abstract:
US share prices have risen in part because bond prices have rallied due to evidence that economic growth is slowing in the US. Gross domestic product is estimated to have risen by some 2% in 3rd qtr 1996, a drop from 4.7% for 2nd qtr 1996. There is little clear evidence of how the economy is performing in 4th qtr 1996, though some data on employment in Oct 1996 will be issued in early Nov. Employment is estimated to have risen by 150,000 jobs. The rise could be less due to the impact of a rise in the minimum wage, or it may be more, and this uncertainty makes the market nervous.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Doubts about the US economic miracle
Article Abstract:
US unemployment has fallen, and inflation is low, and economists are surprised that inflation has not risen with such a drop in unemployment. The level of unemployment at which inflation is likely to rise is difficult to estimate, and may have dropped, partly because workers' inflation expectations have changed so they do not seek such high wage rises. Lower prices for raw materials may also allow for more employment without inflation rising. Inflation may rise and this could affect stock prices.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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