The thing driving service prices is wage growth, and after two years of sub-par economic growth, we've got wages decelerating. If the Fed doesn't get the economy growing at an above-trend pace in the next couple of years, deflation will arise.
Quotes about decelerating (15 Quotes)
While growth in trade will remain satisfactory in 2005, the decelerating trend is causing some concern,
We had some downgrades in the chip sector, so there are some worries about inventories and decelerating growth that's weighing on technology,
If eBay were to make this sort of move it would basically be admitting that 'our core market is decelerating.'
At least economic activity is no longer 'decelerating,' as reported in the previous beige book,
Every time you see a number that shows prices decelerating, immediately you have to think of sluggish re-hiring, ... It means companies will still be closely guarding the bottom line and will be slow to add to labor.
It's clear that the economy is decelerating. The question is from where, ... My sense of it is we are slowing, but to a very healthy level. I don't think as I look at my companies that we are going over the edge in terms of a slowdown. We have seen this a lot in the last five years with the economy accelerates and then decelerates.
This group is as cheap as they've been in years, but there's a reason for that. Pricing is decelerating, unit volume trends aren't particularly exciting and the pipeline isn't robust.
The market looks ahead, and maybe investors are worried that between the higher interest rate picture and the decelerating profit growth, the market may have a tough time advancing.
The Christmas season this year might well bring cheer, but consumption growth next year is bound to slow, ... From an annual pace of nearly 4.0 percent in 2004, consumer spending will likely grow at a 3.5 percent rate this year, decelerating to a 2.25 percent pace in 2006.
There's definitely been strengthening in the job market, but it's taken a long time for (hiring) to reach even where it was in early 2001 when employment growth was decelerating. Employees are feeling more confident about their prospects, but you can also say there's still a bit of wariness.
We think fundamentals are okay on the Strip. Growth is decelerating, but it was healthy to begin with. No one would have anticipated continual double-digit growth.
The big issue is decelerating earnings growth. Earnings will still be higher but the ideal time to buy stocks is when earnings go from awful to not so bad as opposed to going from great to good,
Employment gains are rising at a slower rate, retail sales are decelerating somewhat, the stock market is going through some turmoil and the Middle East situation is also probably having a dampening impact on consumers' willingness to spend, ... So I think the Michigan confidence report is consistent with an overall picture in which consumers are doing well, but probably taking a breather for a while.
Businesses are running up against capacity constraints and have no choice but to hire, and that may bid up wages. Productivity is decelerating and inflation pressures keep creeping up.