A snapshot of the week’s US economic data is provided below.

March 19

• Index of Leading Indicators - continued contraction of economic activity
• Jobless claims - new high for continuing claims and insured unemployment rate
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March 18

• Fed adopts more aggressive measures to fix the credit machine and facilitate working of the economy
• Higher gas prices mostly responsible for sharp increase in Consumer Price Index
• Current account deficit shrinks as imports fall
  
  

March 17

• Multi-family starts lift total housing starts; recovery in home building not there yet
• Core wholesale prices show moderating trend
  
  

March 16

• Factory production remains weak, but pace of decline shows moderation
• Home Builders Survey shows flickering signs of stability
  
  

“In sum, although the economy remains mired in a severe recession, we have seen nothing of late to dissuade us from our forecast of recovery getting under way in the fourth quarter of this year. In fact, what we have seen of late increases our confidence in the forecast,” concluded Paul Kasriel (Northern Trust).

Not disputing the downward momentum in economic data, Binit Panel, economist at Goldman Sachs, asked in a recent research report (via the Financial Times) “what could go ‘right’ for the world economy." He listed a number of developments that might be potential bright spots.

“First, a stabilization in consumer demand in the US - and an improvement in the UK and Germany.

“Second, an early end to the US housing downturn and a stabilization in the UK housing market.

“Third, the successful operation of the Federal Reserve’s term asset-backed securities loan facility, or Talf.

“Fourth, greater international co-operation - for example at the forthcoming G20 meeting.

“Fifth, better signs from the Bric (Brazil, Russia, India and China) emerging market economies - in particular China.”

Interestingly, after months of bleak economic news, an increasing proportion of Americans now say they're hearing a mix of good and bad economic news, while fewer say they're hearing mostly bad news. “As has been the case for the last few months, very few say they are hearing mostly good news about the economy,” reported The Pew Research Center for the People & the Press.



Week’s Economic Reports

Click here for the week’s economy in pictures, courtesy of Jake of EconomPic Data. Click here for a summary of this week's economic calendar from Yahoo.

In addition to Fed Chairman Ben Bernanke’s testimony to the House Financial Services Committee (Tuesday, 24 March), the US economic highlights for the week include the following:



Markets

The performance chart obtained from the Wall Street Journal Online shows how different global markets performed during the past week.

“You are too concerned about what was and what will be. There is a saying: yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the present,” said Oogway (Kung Fu Panda - hat tip: Charles Kirk). These words ring especially true as I mourn the sad loss of Bennet Sedacca. He was not only a brilliant strategist and regular contributor to the Investment Postcards site, but also a dear personal friend. Rest in peace, Bennet.

That’s the way it looks from Cape Town.