Today's batch of economic news is mixed, and seemingly conflicted as ever.
Hey, don't shoot me - I'm only the messenger.
But for techies wondering how secure their jobs really are these days the news from the most recent Federal Reserve Beige Book report signaled economic growth for November and December, 2007 - a period where many pundits had said a recession had already started.
Wrong again, pundits.
The news allowed the stock market to exhale on Wednesday and recoup some of the losses it had absorbed for the month. Perhaps more importantly, the Fed report calmed the jangled nerves of consumers and business owners -- at least for the time being.
This from the Associated Press this morning:
"The Beige Book survey of regional economies indicated that economic activity increased modestly from mid-November through December, though at a slower pace than in a previous survey.
The report seemed to quell some concerns about prospects for the economy that took on new urgency after Intel Corp. issued disappointing earnings after the closing bell Tuesday.
The Fed's report bolstered enthusiasm among bullish investors who pointed to results from JPMorgan Chase & Co. and Wells Fargo & Co. The banks' reports appeared to remind Wall Street that while the fallout of souring loans was widespread, it wasn't necessarily evenly felt. And buyout news in the tech sector gave a boost to investor sentiment."
I understand how aggravating it is to log on your computer and check the business news, only to be hammered with yet another round of "on the one hand . . . but on the other hand" economic news. The Fed report, for example, was tempered by news from the housing market that new home construction was down a whopping 25% in 2007, signaling further distress in the home sector.
The Beige Book survey, however, carries a great deal of weight on Wall Street and in the business community. For it to signal that economic growth is continuing is a good sign for the economy and for tech workers across the board.
So, good news for today. Let's see what tomorrow brings.