Thursday, October 9, 2014


The JRB Economic Index rose again in both July and August. The current reading of + 1.59 in August is a continuation of a recent trend in economic activity. The last two times the Index has risen above the + 2.00 line, a downward action has followed. Perhaps this time will be different. Only time will tell.  The economy seems to be trending in the right direction in recent months and perhaps the longer term picture is improving as well.

Tuesday, September 2, 2014


The JRB Economic Index rose to +1.25 in June, 2014.  The rise is a continuation of recent economic growth. Corporate income continues to rise and with it the stock market. Some wage growth in the coming months would be a welcome sign.  The Federal Reserve will probably not raise interest rates until the job situation improves.  We don't expect a rate hike until late 2015 at the earliest.

Friday, July 25, 2014

The Upward Trend Continues

The JRB Economic Index continues its upward trend. The May, 2014 reading of +1.09 indicates slow but steady growth in the economy.  The unemployment rate is declining and automobile sales are climbing. Let us hope this economic progress continues well into next year.

Sunday, June 15, 2014

More Slow Growth.

The JRB Economic Index rose again in April to a reading of +0.96, indicating that the recovery continues at a slow pace.  We expect a continuation of the recent upward trend.

Wednesday, May 7, 2014

Slow And Steady Growth

        The JRB Economic Index fell slightly in February. The new reading of +0.85 was slightly lower than the January, 2014 reading. The 288,000 jobs added in April, was the largest gain in two years. Vehicle sales are rising and consumer sentiment is on the rise as well.  The problem causing the slow growth path the economy has taken, is the lack of wage growth.  The jobless rate continues to decline, but the trend in hourly wage growth is hurting the purchasing power of consumers.  So we continue on this path of continued slow growth.  Because economic growth remains slow and inflation remains in check, it is quite possible that this recovery may well prove to be longer in length than most economists estimate. Let's hope this is genuinely the case.

Monday, March 24, 2014

An Upward Trend Has Begun.....Again

Here we go again. The JRB Economic Index
has started to rise yet again. The January, 2014 reading was a positive 0.90 and marks a new upturn in our Index. The economic picture we see in our Index is one of slow uneven growth. With the Federal Funds Rate remaining at such a low level for an extended period of time, a true picture of economic growth has emerged. Expect slow growth moving forward as short-term rates remain low.  The Fed is attempting to unwind its stimulus at a slow and steady pace so as not to rattle the markets. It should be interesting to see what the new Fed Chief will do going forward.  How soon will it be before a rate increase? At this point, it would seem that any Fed Funds hike is a year or more away. And with no rate increases in sight, it appears that a continuation of our chart trend seems likely.

Wednesday, January 22, 2014

Revised Data for the Index

The JRB Economic Index fell again in November to a reading of plus 0.76.  A prior reading showing an upward slope in the index is incorrect. Due to an unusually large disparity between the preliminary monthly reading and the final index reading, what appeared to be an upward trend, turned out to be a slight downward movement for the index instead. However, even though the Index continues to show weakness, we believe that the Index will turn in an upward direction prior to reaching the zero mark. All signs point to a rebound in our Index sometime in the near future. Please remember that for the Index to signal that a recession has started, the plunge in the Index would have to fall below a minus one reading. If the Index does fall below the minus one mark, it would signal that a recession was already in progress, and that the recession had its beginning sometime between the peak in the Index and the subsequent reading below the minus one figure.