US Economy Seems to be Back on Track.

You may not have seen the recent reports … but there was an unexpected jump in new-house construction in December, and an increase in business activity in January. Plus, the US also saw a drop in its dole claims.

Despite these improvements, the full-year 2006 CPI for the US was only 2.5%; compared with last year’s concerning 3.4%.

p=. !!

The statistics in so far suggest that the US economy is once again expanding at a slow, but encouraging, pace. And that it will not in fact stall, as many economists were predicting.

As such, the Federal Reserve will closely monitor events; and probably maintain an upward bias on US interest rates over the next 12 months.

This will no doubt be the same approach adopted by the Australian Reserve Bank.

Speak Your Mind