Daily Commentary by Larry Baer: Economic
activity here in the states is beginning to register the increasingly intense
ripple-effects of significant deceleration in the European and Chinese
economies.
An early morning report from the third
Federal Reserve District showed manufacturing activity in the Philadelphia
region shrank in June at the fastest pace in almost a year, highlighting how
the effects of the global economic slowdown are holding our domestic factory
activity at sub-par levels. U.S.
manufacturers reported the second largest decline in new export orders since
September 2009. Manufacturing has been
one of the strongest links in an otherwise frail U.S.
economic recovery, but weaker overseas demand is taking a toll on hiring not
only in this specific sector - but almost all other sectors of our economy.
The number of Americans filing new claims for
unemployment benefits edged lower by 2,000 during the week ended June 16th. The lack of greater improvement is
discouraging. New job growth has slowed
as businesses have grown more cautious given the clouds of uncertainty
surrounding the government's fiscal policies and lingering concerns as the
world economy continues to show signs of cooling.
As long as these conditions prevail -- the
macro-economic supports underlying the forward looking prospects for steady to
perhaps fractionally lower mortgage interest rates will remain strong.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
