Economic News Story Catts, Tim. Term Paper

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Total Length: 743 words ( 2 double-spaced pages)

Total Sources: 5

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(Semuels, 2010)

Willis, Bob. "U.S. Economy." Business Week. 2010. Web. 30 Jun. 2010.

In this article, the author discusses how incomes grew faster in May than spending, resulting in improved amounts of saving from consumers. This is significant, because it shows how the economy is attempting to form some kind bottom, with the psychology of consumers changing. When an economic recovery begins, this will be an important element in helping to provide a foundation, for large big ticket purchases. At which point, the increased savings will translate into more spending and investing. (Willis, 2010)

Schlisserman, Courtney. "U.S. Economy: Business Activity Index Climbs. Business Week. 2010. Web. 30 jun. 2010

In this article, the author discusses how the ISM Manufacturing Index continues to remain above 50, with the number coming in at 54 for May. When you see a consistent increase above 50, this is sign that the manufacturing sector is beginning to improve.

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The fact that the index was above 50 for nine months, shows the strength in the manufacturing sector. This is significant, because the improvement in manufacturing is either showing: that businesses are rebuilding their inventory or there is strong demand from consumers. Based on previous news articles that were discussed earlier, one could infer that this is inventory rebuilding. Where, it only a matter of time until manufacturing will be affected, by the various economic headwinds. (Schlisserman, 2010).....

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