Steven Wood Remain Quotations

Because pricing power has disappeared, profit margins will remain under significant pressure.

Labor markets are deteriorating rapidly. Layoffs remain at a fast pace, while hiring has all but stopped. As economic activity continues to unravel, there are few prospects for a near-term turnaround. The national unemployment rate, now at 4.9 percent, should breach 6 percent before the economy begins to recover.

Consumers still remain optimistic about the future despite having some concerns about the present. This is very typical of a business cycle turning point,

With employment gains non-existent, income growth has slowed. As households also become more judicious in taking on more debt, consumer spending will remain soft.

After adjusting for the storm effects, both initial and continuing claims appear to be near their pre-hurricane levels, indicating that labor markets remain strong despite the weak October payroll employment report.

Despite the loosening of the labor markets, income gains remain sufficient to support spending at a moderate pace.

Households' economic attitudes have declined modestly over the last six months, ... But the level suggests consumers remain very optimistic about their personal financial condition.