–Retransmitting Story Headlined 14:09 ET Monday, Fixing Typo
By Yali N’Diaye
FLORENCE, Ala. (MNI) – The focus on productivity and weak economic
activity has contributed to the slow hiring coming out of the
recession, but should forecasts of a gradual recovery materialize,
corporations should put their money to work, Atlanta Federal Reserve
President Dennis Lockhart said Monday.
“This focus on productivity has contributed to the slowness of
rehiring coming out of the recession,” Lockhart said during a question
and answer session following a speech at the Rotary Club of Florence and
the Greater Shoals/Sheffield Rotary Club, in Florence, Alabama.
Still, “As the economy grows, and as activities develop,” he
predicted, and the level of uncertainty diminishes, decisions will
gradually “put that money to work.”
Earlier in his remarks, Lockhart identified “sectoral sources of
strength that will serve to counter forces of weakness in the second
half of this year and into 2012.”
He cited business investment in equipment and software, the energy
sector as well as a strong tourism season this summer in particular.
During the questions and answers, he also said the agricultural
sector “on balance” was quite strong.
Lockhart had said in his speech that retail sales and initial
unemployment claims were among the recent data that contradict
predictions of a recession.
Commenting on stock market movements, Lockhart noted that “The
stock market operates on its own cycle.” Thus it does not necessarily
tell us what the direction of the economy will be.
in his earlier prepared remarks he had attributed the recent stock
market volatility to concerns over the economy and the U.S. and European
sovereign ratings, as well as bank-specific issues.
** Market News International **
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