Fed Beige Book sends more mixed signals

by Laura Ehrenberg-Chesler on September 9, 2010

in Economic Indicators,Investment Strategies

The Federal Reserve Beige Book numbers were released yesterday afternoon.  The most talked about headline contained the use of the words ” widespread deceleration” compared with previous periods.  Not good to hear in the middle of a so called recovery.

However, somewhat less pronounced, were some decent economic numbers.  Travel and tourism picked up, as well as manufacturing activity in some districts.  Agricultural producers, and extractors of natural resources, reported gains in demand and sales.

Overall the report was a mixed bag with the overriding theme being one of slowing from recent periods.  The markets chose to focus on the more positive data points however, and that is encouraging for investors.  Continued perception of regime change in November may cause this positive sentiment to continue for a while longer.

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