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Essay / Research Paper Abstract
A 3 page paper discussing economic indicators and the state of the economy during the first quarter of 2007. The purpose of the assessment is to discuss the effects of the macroeconomy on business activity. Bibliography lists 6 sources.
3 pages (~225 words per page)
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United States macroeconomy is, as usual, "mixed." The Federal Reserve reports in its Beige Book (March 7, 2007 edition) that most districts had reported an increase in retail sales
since the last report in January 2007, but that some had been hampered by the bad weather experienced in the Northwest and the Northeast during February 2007. Sales for
clothing and home furnishings increased, but "Vehicle sales remained sluggish in most Districts, especially for domestic models" (Summary, 2007). The bottom line for
business is that whether specific areas of the economy are "good" or "bad" depends largely on perspective. In light of the latest Beige Book edition, "the economy" is quite
good for retailers, far from quite good for dealers of Detroits auto products. Economic Indicators Economic indicators can be used to assess the
overall environment, however. Table 1 provides current indicators. Table 1. Selected Economic Indicators February 2007 Indicator Previous Current GDP - 3Q2006 and 4Q2006 estimate 2.6 % change
2.0 % change Housing Starts - 14.3 % change 9.0 % change Manufacturing and Trade Inventories and Sales 1.3 % change - 0.7 % change Advance Retail and Food Service
Sales 0.0 % change 0.1 % change U.S. International Trade in Goods and Services - $61.5 billion - $59.1 billion Monthly Wholesale Trade: Sales and Inventories - 0.5 % change
0.7 % change Manufacturers Shipments, Inventories, and Orders 2.8 % change - 5.6 % change Construction Spending 0.6 % change - 0.8 % change New Home Sales - 15.8 %
change - 3.9 % change Advance Report on Durable Goods Manufacturers Shipments and Orders 2.8 % change - 7.8 % change Source: (Economic Indicators, 2007; News Release, 2007)