We’ll see if the zero rate policy keeps giving that feeling that the economy is dragging an anchor chain, and requires lower taxes for a given amount of govt. spending to sustain a lower output gap.
- ADP, claims and employment component of ISM survey consistent with payroll gwth of 0 to -50k on Friday.
- ISM (non-mfg) moves back above 50
- “Economy seems to have leveled off with expectation of an upswing in our business in Q1 2010.” (Professional, Scientific & Technical Services)
- “There has been a slight upturn in our business activities; however, it is not entirely attributable to any one particular source.” (Public Administration)
- “The environment seems to be improving, but we will continue to be cautious as we look forward.” (Retail Trade)
- “The current economic conditions are continuing to have a flat or negative effect on our business.” (Wholesale Trade)
- “No items in short supply; suppliers looking to set up agreements for 2010 with quarterly or semiannual price reviews.” (Arts, Entertainment & Recreation)