Confidence is key: economist cites the importance of business outlook to recovery. (The Economy & You).Trying to jump-start the economy by reducing interest rates even further is like pushing on a string. Despite the fact that the Federal Reserve has lowered the federal funds rate Federal Funds Rate
The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. to 1.75%, its lowest level in 40 years, the Years, The
the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]
See : Time Index of Leading Economic Indicators index of leading economic indicators
An index that is compiled by the Conference Board, a private-sector consulting firm. The index is designed to indicate the future direction of economic activity. (the measure used to gauge the future health of the economy) has declined for four consecutive months. Why is the economy so anemic anemic
pertaining to anemia. ? One major reason is declining consumer and business confidence.
Think of it this way: Suppose you decide to make a major purchase, such as a house or automobile. If the price has been determined, two additional factors are likely to figure prominently in your decision to make the purchase. The first factor is the interest rate, which is nothing more than the cost of borrowing money. The second factor is how confident you are about your future earnings. For example, if you are concerned about job security, you are not likely to make the purchase, no matter how low interest rates might be. The same logic holds for business owners deciding whether to undertake a new investment. While interest rates are important because they affect the total return on capital invested, if business owners are pessimistic about future economic activity, even low interest rates will not be attractive enough to make them invest.
Over the past year, business owners have been more wary than consumers, so investments have lagged. Fortunately, consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. has carried the economy forward--even though consumers are facing record levels of debt. But the situation has changed over the last three months. The growing number of job losses has caused consumers to become cautious. As a result, if the economy is to improve, investment must pick up. But low interest rates alone will not get the job done. Rather, the key index to watch is business confidence.
The Gazelle gazelle, name for the many species of delicate, graceful antelopes of the genus Gazella, inhabiting arid, open country. Most gazelles are found only in Africa, but several species range over N Africa and SW Asia; the Persian, or goitered, gazelle ( Index, a survey of 350 of the nation's fastest growing black-owned businesses as measured by workforce growth rates Growth Rates
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , took a sharp drop, from 67.7 to 49.5, between the second and third quarters. An index value below 50 indicates that business owners are more negative than positive about economic conditions. Why is the index value important? When business leaders are concerned about the economy, they reduce hiring, which contributes to higher unemployment rates.
The ING Gazelle Index has identified several factors contributing to this trend. These factors include revelations about corporate fraud, gyrating stock market values, and the fear of a double-dip recession double-dip recession
An extended decline in economic activity following an aborted recovery from a previous recession. A relatively weak economic recovery sometimes causes investors to worry about the economy entering another recession. . As these factors improve, investors are likely to gain more confidence in the economy.
You can stay abreast of the changes in black business confidence by following the ING Gazelle Index each quarter. Log on to www.gazetteindex.com for the latest results.
Thomas D Thomas D. (born Thomas Dürr, December 30 1968 in Ditzingen close to Stuttgart, Germany) is a rapper in the German hip hop group Die Fantastischen Vier. He frequently works on solo projects. Life
After finishing Realschule he took on an apprenticeship as a barber. . Boston, who heads Boston Research Group in Atlanta, is a member of the Black Enterprise Board of Economists and conducts research for the ING Gazelle Index.