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As an advisor to my company’s investment management committee, the XYZ industries, I am writing this recommendation based on my professional belief which is based on data and reports that I have been studying from the Federal that I have been studying from the Federal Reserve
Board and from the data and reports by the Bureau of Economics’ Analysis, BEA. The questions that are being asked are: will the economy continue to recover from the recession, slip back into recession, or remain stagnant with little or no growth. The company’s sales growth generally correlates with retail sales and not with new auto sales and with the economy in a recession, the company has decided not to proceed with the new present of building a new facility in the Midwest for some companies that were already struggling, the economic slowdown only made managerial decisions more complex. Many retailers also felt the impact slowing economy. The decline in economic activity in 2007 and 2008 caused many companies to re-evaluate their competitive strategies to determine how to best deal with the slowing economy (www.BEA.org). Both policy makers and managers use a variety of economic data to assess the future direction of the economy leading indicators, such as manufacturing, employment, monetary and consumer statistic are economic variables that generally from down before a recession begins and turns back up before a recovery start. Coincident indicators, including employment, income and business production statistics tend to move in Trans with the overall phases of the business cycle. Inventory investments are more volatile than other forms of investment spending because inventories can be increased and decreased relatively quickly mistakes in inventory holdings can be reversed with less cost than incorrect decisions regarding the construction of new

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