Reports Give Mixed Signs About Condition of Economy
Americans got some mixed news yesterday about the state of the economy, with the government releasing statistics showing that the recession continued during February but with private researchers and the marketplace indicating that the end of the Persian Gulf War may be turning things around now.</br></br>Government reports released yesterday showed that prices for finished goods and the output of the nation's factories continued to fall last month, providing further solid evidence that the U.S. recession was worsening during February.</br></br>In the financial markets, however, attention remained focused on other signs that the economic slump may be coming to an end. As a result, long-term interest rates rose and the value of the surging U.S. dollar strengthened further yesterday.</br></br>Among those signs was an unusual interim report by researchers at the University of Michigan who survey U.S. consumer attitudes each month. While declining to release the exact figures, a survey official said the initial sampling of consumer sentiment this month showed such a sharp improvement that a special report was issued to the survey's clients.</br></br>Many economists believe that plunging consumer sentiment, depressed by soaring energy prices and uncertainty over the Persian Gulf War, caused a large drop in buying that, in turn, was a major factor in the current recession.