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U.S. economy in for rough patch, economist says

Wed, 20 Aug 2008 00:00:05 -0500

The Producer Price Index, a key measure of inflation for companies, jumped again Tuesday. Its 9.8 percent rate of increase over the past year is the highest in 27 years, according to a government report. Last week another report revealed that the trailing twelve-month inflation rate for consumers is now at 5.6 percent-the quickest pace since 1991. These new data justify a rising level of concern for the state of the U.S. economy. Adolfo Laurenti, a senior economist with Chicago-based Mesirow Financial Holdings Inc., sees trouble in the next few quarters but remains cautiously optimistic about a recovery sometime in the second half of 2009.

Q: What did you think about the PPI [Producer Price Index] data that came out today?

A: I think they are bad, quite frankly.

Used car dealerships feeling the pinch

Fri, 25 Jul 2008 00:00:05 -0500

As Skyway Chevrolet in South Chicago prepares to close its doors, General Manager Dan Biegel’s advice to other car dealerships is simple: Get the right inventory.

With credit availability low and gas prices high, drivers are looking to buy the cheapest cars with the best gas mileage. As a result, unlike fuel-efficient models such as Toyota Motor Corp.’s Prius, gas-guzzling trucks and sport utility vehicles have been downright unpopular with prospective buyers.

No red ink for luxury pens in weak economy

Fri, 18 Jul 2008 01:17:26 -0500

Porsche, Mercedes, BMW: These are the names commonly associated with status in America. However, with the slowing economy, the names might be changing.

Replacing the flashy cars could be names such as Conklin, Krone, or Waterman, all makers of fine pens.

That is the trend that Ed Hamilton is seeing in his store, Century Pens, located at 231 S. LaSalle St. in the Bank of America Plaza.

Inflation at second-highest rate in 26 years

Fri, 18 Jul 2008 00:00:05 -0500

Nationwide consumer prices jumped in June, driven by high gasoline, transportation and food prices, the U.S. Bureau of Labor Statistics reported Wednesday. In the Chicago-Gary-Kenosha area however, inflation rose more modestly.

The Consumer Price Index, a key measure of inflation, shot up 1.1 percent on a seasonally adjusted basis from May to June. This was the second-largest national monthly increase in percentage terms in 26 years. The reading was substantially higher than Bloomberg LP's economists' estimate of 0.7 percent.

Online sales bright spot in poor economy

Tue, 10 Jun 2008 00:00:05 -0500

In a sluggish economy where retailers in general are taking a beating, online retailers in Chicago and nationwide continue to make gains in both sales and consumer satisfaction.

According to a recent survey of 125 retailers by Forrester Research Inc. and a Shop.org study, online retail is expected to be a bright spot in the industry in 2008 with sales estimated to rise 17 percent this year to $204 billion from $169 billion in 2007.

Are hedge funds to blame for rising food prices?

Tue, 03 Jun 2008 12:11:08 -0500

How would you like to earn a million dollars today, just to have it disappear tomorrow? Worse, how would you like it if this happened every day?

That’s exactly what grain elevators are experiencing as record commodity prices and dramatic price swings force them to adjust the amount of margin money they ante up every day for grain forward contracts used to hedge, or lock in, today's price.