Sometimes it pays to read more than just the headlines
On A-1 today, the head reads: Economy Shows Signs Of Strain From Oil Prices.
But then we have on the front of Business Day: Healthy Housing Market Lifted The Economy In July
A little confusing, no?
The first story highlighted how inflation surged due to oil, and how consumers are finally responding in kind.
"Across the country, families are trying to figure out where to cut corners so they can afford gas...."
http://www.nytimes.com/2005/08/17/business/17oil.html
OK, but then the second story highlights how while oil prices are a drag, the economy is still expanding because of housing and consumer and business demand.
"Outside of energy, the consumer is fine," said Anthony Chan, a senior economist at JP Morgan Asset Management.
http://www.nytimes.com/2005/08/17/business/17econ.html
Outside of energy? When you've just paid $50 to fill up your tank for the second time this week, there soon won't be much outside of energy.
True, the lengthy jump on C5 [the whole article is not printed verbatim online] tries for some context, but is too prone to waffling. To wit:
Forecasters still expect economic growth to remain healthy for the rest of the year ... But the high cost of oil already appears to be curbing growth, translating into unusually modest gains in employment and pay.
More than a little confusing? Yes, indeed.
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