The Beige Book Report of the American Economy

The Federal Bank issued the “Beige Book” report yesterday, which had information about the U.S economy performance during the last period, where the report suggested that the economic activities continued its modest improvement in most of the US counties, just like what the Federal Bank have confirmed repeatedly and on various occasions.

The report pointed that the House Sales continued its advance in all the counties, which bodes well with regards to the future of the US economy recovery. The report stressed that all counties have shown strong growth in the Manufacturing sector and production levels within the sector, and the Federal Open Market Committee points out that the growth is not quite enough yet to start cutting off the stimulus policies currently in place by the Federal Reserve Bank, which are worth 85$ Billion monthly.

The “Beige Book”, which was issued on the 17th of July, pointed that the U.S economy growth was generally modest and on a moderate base, while the raise in the interest rate, as well as the housing and bank lending conditions, reflected a deceleration from the last “Beige Book”. And it mentioned that the world largest economy survived the cuts in the budget and taxes, with the growth of the revised GDP by 2.5% during the 2nd Quarter from 1.1% during the first 3 months of the year.

On the other hand, the Federal Bank pointed that the labor and employment market sector is still witnessing moderate improvement across the U.S.A, amid employers providing more temp jobs, as the fear of creating new job opportunities still prevail in the sector due to the general weakness in the economic conditions in the U.S, while the job creation growth declined to 162,000 in July, after an average of 200,000 during the last 6 months.

The report didn’t provide any new surprises, for it has reflected the current economic situation, while it confirmed that the recovery phase is still going and that the US economy is still on full recovery path, but going on moderate base.

The US Dollar Index dropped and is currently trading at 82.13, with the lowest level during the day being 82.08 since opening at 82.37, with the day highest level being 82.43.

The French index rose by 6.35 or 0.16% today and closed at 3980.42 points, the index has opened today’s trading at 3983.45 points while it achieved its highest level at 3987.88 points and the lowest at 3927.63 points.

The German DAX index rose by 15.21 points (0.19%) and closed at 8295.92 points, it has opened today’s trading at 8201.56 points, with the highest level for today was 8206.87 points and the lowest being 8095.91 points.

The crude oil prices dropped and traded around 107.51 level per barrel compared to the opening prices of 108.41$ per barrel. The highest level was 108.58$ per barrel and the lowest was 106.99$.

Gold prices dropped as well and are currently trading at 1,387.32 an ounce. The lowest level for today was 1,385.81$ compared to the opening of 1,411.37$, and the highest level was 1,414.97$ per ounce.