In a week of key economic events and data releases, the Federal Reserve’s interest rate decision stole the show.
The US economy has been growing at a healthy pace, but it may slow down soon. That will be bad news for consumers and companies.
Manufacturing
Manufacturing is the process of converting raw materials into finished products using equipment, tools and labor. It is important to the economy and plays a significant role in boosting GDP.
Depending on the type of product, it can include all stages of production, including processing, molding and fabrication. For example, a lumber piece can be processed into a chair by cutting it into smaller pieces and using tools to shape the raw material into the final product.
It may also involve making shoes to fit specific feet by using a mold and then assembling the shoe parts together. This is a process that needs careful management and testing.
With all types of manufacturing, there are risks associated with supply and demand. If there is too much supply, it will flood the market and lead to a drop in price and profits. Keeping production costs low, maintaining quality control and investing in excellent sales management are all key to reducing these risks.
Services
The economics department has no shortage of impressive award winning research and development echelons. Aside from the requisite research meetings and brainstorming sessions, there is a lot of cross training and the occasional impromptu dinner and a show. The best part is the staff has a lot of fun in the sun and a lot of time to spare. Our intrepid aficionados are among the best of the best. Here are some of our best brains at work. A quick search on LinkedIn is all you need to do to find the rest of the gang. if you need to make a call, ask one of the aforementioned amiables for advice and we’ll be on hand to assist you on your journey to sexy success.
Consumer Confidence
Consumer confidence is a key indicator of the overall health of an economy. When consumers feel confident about their income’s stability, they are more likely to spend and drive economic growth higher.
A survey of consumer confidence typically asks respondents about their views about current and future business conditions, unemployment and capability of saving. Each response is given a numerical value, ranging from 0 to 100.
Historically, values above 100 indicate a boost in consumer confidence and a tendency to consume more and save less. Conversely, values below 100 may reflect a pessimistic attitude towards the economic situation and lead to consumers saving more and spending less.
When a confidence index falls, it can cause firms to delay investment. It can also affect the effectiveness of monetary policy. For example, if the Fed cut interest rates to stimulate spending, lower-confidence consumers are more likely to save rather than spend, which can hinder economic growth.
Employment
Employment is a relationship between two parties, usually based on a contract, where one party (the employer) pays the other party (the employee) in return for carrying out assigned work.
This may be in the form of an hourly rate, piecework or annual salary. In some sectors, employees may also receive gratuities, bonus payments or stock options.
A surprisingly strong 517,000 jobs were added in January, although these gains were concentrated in industries such as retail and temporary help, which are notorious for cutting back during the off-season. This is the latest in a long line of impressive statistics.
A weekly economic indicator is a statistical measure that provides a snapshot of the economy at a specific point in time. These measures are usually used for forecasting and market analysis purposes. The most common and well-known indicator is the weekly economic index, or WEI for short. It is published by the Federal Reserve Bank of New York and the Federal Reserve Bank of Dallas.
