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New Signs of Recession for U.S. Economy

October 25, 2007 (Last updated on December 2, 2009) by

The closer it is to the October 31st when the FOMC’s meeting on interest rates policy will be held the stronger the dollar bears feel themselves on the Forex market. With almost each day bringing new reasons for the Fed to decrease interest rate again this time the decision became clear now.

Initial jobless claims for the last week decreased compared to the previous week report, but still came out worse than expected — 331k compared to 339k previous week and 320k expected.

Durable goods orders by the manufacturers, according to U.S. Census Bureau, in September decreased by $3.8 billion or 1.7%, while previous value was revised from 4.9% (also decrease) to 5.3%. Now, considering that the markets were expecting increase by 1.5%, it is possible to say that manufacturing sector is suffering or at least is going to suffer something close to a crisis.

September new home sales increased a little from August number — 770k against 735k (but August value was revised from 795k) and they were still lower than expectations. But real estate sector is already known to be in downfall. So, at least for me nothing surprising here.

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