NEW YORK - This morning, your bowl of cereal and milk probably cost you 49 cents. Last year, it was 44 cents. By next year, it could be 56 cents. It's enough to make you cry in your cornflakes.
The forces behind the rise in food prices — China's economic boom, a growing biofuels industry and a weak U.S. dollar — are global and not letting up anytime soon. Grocery receipts are bulging because the raw ingredients, packaging and fuel that go into the price of foodstuffs cost more than they have in decades.
It's the worst bout of food inflation since 1990, but not yet worrisome to the economy, said John Lonski, chief economist of Moody's Investor Service. While high food prices can cut into consumers' discretionary spending, the 4 percent rate of food inflation is still far below the crippling double-digit levels of the 1970s.
Still, consumers anxious for relief in the checkout line may have to keep waiting.
Andrea Williams, 32, can track the rise in prices of the food she buys for herself, her husband and their three children by looking back at the receipts she says she meticulously saves.
"In 2004, I bought a gallon of milk, it was a $1.63," Williams said before heading into a Wal-Mart in Savoy, Ill., about 140 miles south of Chicago.
A gallon of milk cost nearly $3 a gallon last month in her area.
A couple of years ago, Williams would spend about $250 a month on one big grocery trip. Now she says she's spending $250 on big trips every two weeks.
It's possible to trace the jump in food costs to the commodities markets, where the price of agriculture products and energy have reached multidecade highs this year. Crude oil, which helps dictate the price of gasoline and plastic packaging, hit an all-time peak in September. Wheat prices also climbed to a record.
The run-up in commodity prices has as much to do with short-term supply and demand in each market as with long-term shifts in who produces and consumes those products.
China is the juggernaut. Rapid growth there — and in Brazil, Russia, India and other developing nations — has led to massive demand for raw materials, including energy to run factories and cars, metals to build infrastructure and beans and grains to feed livestock and people. China will import almost 50 percent of the world's oilseeds within a decade, becoming the world's largest importer, according to estimates from the Organization for Economic Cooperation and Development.
Oils made from oilseeds such as soybeans are used widely in packaged foods, while corn is used to make high fructose corn syrup, an ubiquitous sweetener found in everything from soda to bread.
China's oilseed demand reflects another trend: The world is using more of its food supply to make fuel. Corn in the U.S. and China is being converted to ethanol, a gasoline additive. Europe is using more wheat for ethanol and rapeseed for biodiesel, a cleaner burning fuel that is mixed with regular diesel. Brazil has bulked up its production of sugarcane to make ethanol.
Demand for corn from the burgeoning ethanol industry in the U.S. helped drive corn prices to a peak earlier this year, setting in motion a domino effect of price increases through the food chain as livestock raisers, food makers and retailers tried to recover costs.
Corn prices have come off their high due to expectations for a huge crop this year, but prices remain historically elevated because of inflation across the agriculture market. A bushel of corn that went for about $2 a couple of years ago costs about $3.50 today.
Higher commodity costs have led Kellogg Co., General Mills Inc., Kraft Foods Inc. and others to hike prices this year. Kellogg boosted prices 5 percent in April based on weight; in June, General Mills shrunk cereal package sizes in a way that had the effect of lifting prices. Starbucks Corp. decided to charge more for lattes and other drinks to cover its milk costs.
Monday, October 8, 2007
Saturday, September 22, 2007
Is Britain's Economy Slowing Down?
Before he took over as British Prime Minister last month, Gordon Brown's speeches often included a familiar refrain. Britain's economy, the then-Chancellor of the Exchequer would thunder, boasted sustainable growth — averaging almost 2.9% over the past decade, modest interest rates and low inflation. "Of all the major economies — America, France, Germany, Japan," Brown boasted late last year, "Britain has enjoyed the longest postwar period of continuous growth."
He couldn't claim all the credit, of course; the strong global economy that spurred Britain's economy during his 10 years as Chancellor had little to do with Brown, for one thing. But Britain's longest-serving finance minister since the 1820s is owed at least some of the plaudits. For example, his bold decision to grant independence to the Bank of England in 1997 separated politics from the setting of interest rates, helping raise confidence in the U.K. economy and providing a backdrop for stable growth.
It's not surprising, then, that the man picked in June to replace Brown — a dependable, gaffe-free Scot — as Chancellor signaled little in the way of change. But if Alistair Darling (no less dependable, gaffe-free, or Scottish) is unlikely to tinker too much with the Treasury, both men must be hoping the British economy remains just as reliable. And, right now, there's cause for concern. Rising gas prices kept inflation at 2.4% in June, above the government target of 2% and the E.U. average of 2.1%. Desperate to keep a lid on prices, the Bank of England pushed up interest rates earlier this month to 5.75%, a six-year-high and the fifth rise in less than a year. Economists expect the Bank to further nudge up rates to 6% in the coming months.
You can almost hear Britain's consumers groan. With household debt in the U.K. more than doubling over the last decade to $2.6 trillion, and Britons' rate of saving at its lowest level since the 1960s, rising interest rates will hit pocketbooks hard. The CBI, a business lobby group, expects consumer spending to grow 2.8% this year. Next year, it says, that figure could slip to 2.1%. Economic growth won't escape unharmed, either. The threat of rising rates triggering a downturn is "greater today than it has been in the 10 years Labour have been in power," says Adrian Cooper, managing director of consultants Oxford Economics. So while economists are penciling in growth of 2.7% this year, expansion in 2008 could tumble to 2% says Karen Ward, U.K. economist at HSBC in London. "The new Chancellor," Ward adds, "is going to have to modify the opening line of his speech."
The new Chancellor, of course, has few policy levers through which to intervene — it's up to the Bank of England to decide when inflation has been tamed by changes to the cost of borrowing; certain taxation levels for the next couple of years were set last March, and growth in government spending until 2011 has already been capped. The good news for Darling: Rising interest rates seem to be cooling Britain's housing market, where low-cost credit and a limited supply of homes have sent house prices skyward in recent years. The value of the average home reached $401,000 in May according to Halifax, a mortgage provider. That's almost three times the average in 1997. But with new buyers treading carefully, house prices rose by just 2% in the second quarter of this year, below the increase of the previous two quarters. Housing price inflation rates are expected to fall further in the coming months, economists say.
Despite signs suggesting a cooling off, there are good reasons not to fear a housing market crash. By the time house prices tanked in the early 1990s on the back of a boom in previous years, interest rates had hit an eye-watering 15%, analysts at Bank of America point out in a recent note. That's a long way off today's level. And unemployment neared 10% in 1991, triggering record numbers of home repossessions. With today's jobless rate at 5.4%, comfortably below the level in Europe's other major economies, the labor market offers a good deal more support.
That's not to say businesses aren't feeling the pinch. U.K. listed firms issued more profit warnings in the first half of this year than in any same period since the dotcom blowout. Even in the City, London's fiercely competitive financial center, the number of new jobs is set to slip by two-thirds this year, according to the capital's Centre for Economics and Business Research. But despite the doom and gloom, there's still room enough for specialist sectors to grow handsomely. London's leading share of international markets means Britain's financial services sector should still grow by 4.7% this year, according to Ernst & Young. And that will surely make it into the Chancellor's speech.
He couldn't claim all the credit, of course; the strong global economy that spurred Britain's economy during his 10 years as Chancellor had little to do with Brown, for one thing. But Britain's longest-serving finance minister since the 1820s is owed at least some of the plaudits. For example, his bold decision to grant independence to the Bank of England in 1997 separated politics from the setting of interest rates, helping raise confidence in the U.K. economy and providing a backdrop for stable growth.
It's not surprising, then, that the man picked in June to replace Brown — a dependable, gaffe-free Scot — as Chancellor signaled little in the way of change. But if Alistair Darling (no less dependable, gaffe-free, or Scottish) is unlikely to tinker too much with the Treasury, both men must be hoping the British economy remains just as reliable. And, right now, there's cause for concern. Rising gas prices kept inflation at 2.4% in June, above the government target of 2% and the E.U. average of 2.1%. Desperate to keep a lid on prices, the Bank of England pushed up interest rates earlier this month to 5.75%, a six-year-high and the fifth rise in less than a year. Economists expect the Bank to further nudge up rates to 6% in the coming months.
You can almost hear Britain's consumers groan. With household debt in the U.K. more than doubling over the last decade to $2.6 trillion, and Britons' rate of saving at its lowest level since the 1960s, rising interest rates will hit pocketbooks hard. The CBI, a business lobby group, expects consumer spending to grow 2.8% this year. Next year, it says, that figure could slip to 2.1%. Economic growth won't escape unharmed, either. The threat of rising rates triggering a downturn is "greater today than it has been in the 10 years Labour have been in power," says Adrian Cooper, managing director of consultants Oxford Economics. So while economists are penciling in growth of 2.7% this year, expansion in 2008 could tumble to 2% says Karen Ward, U.K. economist at HSBC in London. "The new Chancellor," Ward adds, "is going to have to modify the opening line of his speech."
The new Chancellor, of course, has few policy levers through which to intervene — it's up to the Bank of England to decide when inflation has been tamed by changes to the cost of borrowing; certain taxation levels for the next couple of years were set last March, and growth in government spending until 2011 has already been capped. The good news for Darling: Rising interest rates seem to be cooling Britain's housing market, where low-cost credit and a limited supply of homes have sent house prices skyward in recent years. The value of the average home reached $401,000 in May according to Halifax, a mortgage provider. That's almost three times the average in 1997. But with new buyers treading carefully, house prices rose by just 2% in the second quarter of this year, below the increase of the previous two quarters. Housing price inflation rates are expected to fall further in the coming months, economists say.
Despite signs suggesting a cooling off, there are good reasons not to fear a housing market crash. By the time house prices tanked in the early 1990s on the back of a boom in previous years, interest rates had hit an eye-watering 15%, analysts at Bank of America point out in a recent note. That's a long way off today's level. And unemployment neared 10% in 1991, triggering record numbers of home repossessions. With today's jobless rate at 5.4%, comfortably below the level in Europe's other major economies, the labor market offers a good deal more support.
That's not to say businesses aren't feeling the pinch. U.K. listed firms issued more profit warnings in the first half of this year than in any same period since the dotcom blowout. Even in the City, London's fiercely competitive financial center, the number of new jobs is set to slip by two-thirds this year, according to the capital's Centre for Economics and Business Research. But despite the doom and gloom, there's still room enough for specialist sectors to grow handsomely. London's leading share of international markets means Britain's financial services sector should still grow by 4.7% this year, according to Ernst & Young. And that will surely make it into the Chancellor's speech.
Kiss your cell phone carrier good-bye
LONDON, England (AP) -- Britain's treasury chief says he wants new, American-style guarantees to protect savers' money after the Bank of England's effort to bail out Northern Rock -- one of Britain's biggest mortgage lenders -- sparked panic among depositors.
The announcement is the latest consequence of the crisis afflicting Northern Rock, which has reportedly seen the bank absorb £3 billion ($6 billion) in publicly funded loans and raised questions about how Britain's banking system is managed.
Treasury chief Alistair Darling told The Times of London he was considering U.S.-style deposit insurance, which would protect customers' money in the event of their bank's collapse. He did not give a figure, but The Times quoted him as saying a £100,000 guarantee was a possibility.
Under current regulations, only the first £2,000 of British bank customers' money is fully guaranteed, while the next £33,000 is guaranteed up to 90 percent. Darling told The Times those protections were inadequate.
Darling and other officials have come under fire for their handling of the crisis, which first became public on September 14 when the Bank of England announced it had made funds available to Northern Rock because the company was having trouble getting loans from other banks still smarting from the collapse of the U.S. subprime mortgage market.
Government officials tried to reassure the public that Northern Rock was still solvent, but worried customers ignored the advice and lined up at the bank's branches to withdraw their savings as the value of the company's shares collapsed.
Bank of England Governor Mervyn King came in for further criticism when he announced plans to inject funds into the longer-term money market, a major policy U-turn analysts said could have eased pressure on Northern Rock if made earlier.
Angry lawmakers grilled King on Thursday about why he failed to prevent a run on deposits, and the chairman of the committee investigating the crisis said Darling and other regulators would also be asked to testify.
The Financial Times said Saturday that Northern Rock has so far been forced to borrow about £3 billion in publicly funded loans. Northern Rock Chief Executive Adam Applegarth had previously said his company wanted to borrow substantial sums of money from the Bank of England, but did not say how much.
A Bank of England spokeswoman said the £3 billion figure was speculative.
"What happens is that various commentators have looked at our balance sheets and seen that it's expanded," the spokeswoman said, speaking on condition of anonymity in line with bank policy. "They've gone and made a supposition out of an expansion in the balance sheet."
A Northern Rock spokeswoman refused to discuss the report.
"We don't comment on corporate activity of that nature," company spokeswoman Jemma Rundle said.
The announcement is the latest consequence of the crisis afflicting Northern Rock, which has reportedly seen the bank absorb £3 billion ($6 billion) in publicly funded loans and raised questions about how Britain's banking system is managed.
Treasury chief Alistair Darling told The Times of London he was considering U.S.-style deposit insurance, which would protect customers' money in the event of their bank's collapse. He did not give a figure, but The Times quoted him as saying a £100,000 guarantee was a possibility.
Under current regulations, only the first £2,000 of British bank customers' money is fully guaranteed, while the next £33,000 is guaranteed up to 90 percent. Darling told The Times those protections were inadequate.
Darling and other officials have come under fire for their handling of the crisis, which first became public on September 14 when the Bank of England announced it had made funds available to Northern Rock because the company was having trouble getting loans from other banks still smarting from the collapse of the U.S. subprime mortgage market.
Government officials tried to reassure the public that Northern Rock was still solvent, but worried customers ignored the advice and lined up at the bank's branches to withdraw their savings as the value of the company's shares collapsed.
Bank of England Governor Mervyn King came in for further criticism when he announced plans to inject funds into the longer-term money market, a major policy U-turn analysts said could have eased pressure on Northern Rock if made earlier.
Angry lawmakers grilled King on Thursday about why he failed to prevent a run on deposits, and the chairman of the committee investigating the crisis said Darling and other regulators would also be asked to testify.
The Financial Times said Saturday that Northern Rock has so far been forced to borrow about £3 billion in publicly funded loans. Northern Rock Chief Executive Adam Applegarth had previously said his company wanted to borrow substantial sums of money from the Bank of England, but did not say how much.
A Bank of England spokeswoman said the £3 billion figure was speculative.
"What happens is that various commentators have looked at our balance sheets and seen that it's expanded," the spokeswoman said, speaking on condition of anonymity in line with bank policy. "They've gone and made a supposition out of an expansion in the balance sheet."
A Northern Rock spokeswoman refused to discuss the report.
"We don't comment on corporate activity of that nature," company spokeswoman Jemma Rundle said.
Kiss your cell phone carrier good-bye
(Fortune Magazine) -- You've probably been hearing a lot about unlocked mobile phones lately, especially in the context of the new Apple cell phone and AT&T, the device's sole service provider. Most iPhone owners seem to love the sleek device, but are less than thrilled with AT&T's slow network.
Enter some crafty tech geeks. They've found some creative ways to free, or unlock, the iPhone from AT&T so that it works on other networks too. These hackers, including a New Jersey teenager who used a soldering iron to crack the iPhone, have been grabbing headlines lately in part because it's not yet clear whether their actions are legal (by unlocking their iPhones, do users owe AT&T a hefty termination fee?).
The only way to free the new Apple iPhone from AT&T's service is to hack into it. Other phones are already sold 'unlocked,' which lets you pick a carrier and a more flexible rate plan.
Steve Jobs takes on iPhone hackers
You can buy one through an independent retailer - a mobile phone manufacturer like Nokia or an online store that specializes in such devices - and then sign up for month-to-month service with a mobile operator of your choice.
Or you can ask your carrier to unlock your existing phone once your contract has ended. Most will agree to do it.
"We do unlock phones for people who want to do that," says Mark Siegel, an AT&T spokesperson. "We try to have a consumer friendly approach to it."
Unlocked phones have several advantages: You're not enslaved to a lengthy contract, and you can use them on multiple networks, including many of those found overseas. With a locked phone, however, you're stuck with one network and pricey roaming fees when traveling abroad.
Nicolas Bernadi, a Palo Alto-based managing director at European gourmet food manufacturer Frial, travels abroad about once a month and pays roaming charges of about $1 per minute with a locked phone.
"It's ridiculous," says Bernadi.
Unlocking a phone is easy, assuming your existing carrier agrees to do it. A rep simply punches in an electronic code that "frees" your device from the company's network.
Should it be a crime to unlock an iPhone?
Sound too good to be true? Well, there are a few catches: Not all phones, including some of the most popular ones like the iPhone, are sold unlocked (leaving it up to hackers to break the carrier's grip). And unlocked phones, at least the ones you buy directly from a carrier or an online retailer, don't come with those generous subsidies that can drive the price of a phone down to practically nothing.
Nokia's unlocked phones, for instance, cost a much as $750. The Treo 680 smartphone, which sells for $150 with a two-year wireless plan from AT&T, costs $400 if bought unlocked from its maker, Palm
Similarly, the RAZR V3 from Motorola will set you back $170 for an unlocked version, compared to just $50 if you sign up with T-Mobile.
What's more, even though your phone now works on multiple networks, you'll still need to sign up with a carrier. The good news is, you can get a month-to-month contract, which can be cancelled at any time, with rates similar to standard two-year contracts.
But there's another drawback: To work, an unlocked phone has to run on a wireless standard known as GSM. While 85 percent of the world's mobile phones use GSM, that's not the case in the United States, where two out of the four biggest carriers, Verizon Wireless and Sprint Nextel use a competing wireless standard known as CDMA.
Because of the higher price and the technical limits, unlocked phones are little more than a novelty in the United States. In western Europe and other parts or the world, where unlocked phones are hugely popular, consumers aren't accustomed to getting their phones dirt-cheap.
"People value their freedom in principle," says Roger Kay, president of Endpoint Technologies, a Wayland, Mass.-based research firm. "But when you put it up against hard dollars, they'd rather take their enslavement."
Nokia: Smart phones, few U.S. buyers
Some analysts had speculated that Apple's entry into the cell phone market would mark a turning point for the wireless industry - and pave the way for more unlocked devices. If consumers were willing to shell out as much as $599 for an iPhone, the thinking went, perhaps the era of generous carrier subsidies would be over.
Or maybe not. AppleCEO Steve Jobs earlier this month slashed the price of the $599 model by one-third and discontinued the $499 version altogether, suggesting that consumers overall aren't ready to pay top dollar for their mobile phones.
Apparently, Americans still want a deal
Enter some crafty tech geeks. They've found some creative ways to free, or unlock, the iPhone from AT&T so that it works on other networks too. These hackers, including a New Jersey teenager who used a soldering iron to crack the iPhone, have been grabbing headlines lately in part because it's not yet clear whether their actions are legal (by unlocking their iPhones, do users owe AT&T a hefty termination fee?).
The only way to free the new Apple iPhone from AT&T's service is to hack into it. Other phones are already sold 'unlocked,' which lets you pick a carrier and a more flexible rate plan.
Steve Jobs takes on iPhone hackers
You can buy one through an independent retailer - a mobile phone manufacturer like Nokia or an online store that specializes in such devices - and then sign up for month-to-month service with a mobile operator of your choice.
Or you can ask your carrier to unlock your existing phone once your contract has ended. Most will agree to do it.
"We do unlock phones for people who want to do that," says Mark Siegel, an AT&T spokesperson. "We try to have a consumer friendly approach to it."
Unlocked phones have several advantages: You're not enslaved to a lengthy contract, and you can use them on multiple networks, including many of those found overseas. With a locked phone, however, you're stuck with one network and pricey roaming fees when traveling abroad.
Nicolas Bernadi, a Palo Alto-based managing director at European gourmet food manufacturer Frial, travels abroad about once a month and pays roaming charges of about $1 per minute with a locked phone.
"It's ridiculous," says Bernadi.
Unlocking a phone is easy, assuming your existing carrier agrees to do it. A rep simply punches in an electronic code that "frees" your device from the company's network.
Should it be a crime to unlock an iPhone?
Sound too good to be true? Well, there are a few catches: Not all phones, including some of the most popular ones like the iPhone, are sold unlocked (leaving it up to hackers to break the carrier's grip). And unlocked phones, at least the ones you buy directly from a carrier or an online retailer, don't come with those generous subsidies that can drive the price of a phone down to practically nothing.
Nokia's unlocked phones, for instance, cost a much as $750. The Treo 680 smartphone, which sells for $150 with a two-year wireless plan from AT&T, costs $400 if bought unlocked from its maker, Palm
Similarly, the RAZR V3 from Motorola will set you back $170 for an unlocked version, compared to just $50 if you sign up with T-Mobile.
What's more, even though your phone now works on multiple networks, you'll still need to sign up with a carrier. The good news is, you can get a month-to-month contract, which can be cancelled at any time, with rates similar to standard two-year contracts.
But there's another drawback: To work, an unlocked phone has to run on a wireless standard known as GSM. While 85 percent of the world's mobile phones use GSM, that's not the case in the United States, where two out of the four biggest carriers, Verizon Wireless and Sprint Nextel use a competing wireless standard known as CDMA.
Because of the higher price and the technical limits, unlocked phones are little more than a novelty in the United States. In western Europe and other parts or the world, where unlocked phones are hugely popular, consumers aren't accustomed to getting their phones dirt-cheap.
"People value their freedom in principle," says Roger Kay, president of Endpoint Technologies, a Wayland, Mass.-based research firm. "But when you put it up against hard dollars, they'd rather take their enslavement."
Nokia: Smart phones, few U.S. buyers
Some analysts had speculated that Apple's entry into the cell phone market would mark a turning point for the wireless industry - and pave the way for more unlocked devices. If consumers were willing to shell out as much as $599 for an iPhone, the thinking went, perhaps the era of generous carrier subsidies would be over.
Or maybe not. AppleCEO Steve Jobs earlier this month slashed the price of the $599 model by one-third and discontinued the $499 version altogether, suggesting that consumers overall aren't ready to pay top dollar for their mobile phones.
Apparently, Americans still want a deal
Sunday, September 9, 2007
How Much Money Can a Blog Earn?
“If my blog has ((insert daily number of impressions or page views of your blog here)) how much should it be earning?”
On one level it’s a valid question to ask - after all if you’re going to put time and energy into building something it’d be great to know up front what rewards might be awaiting you.
On another level - it’s an almost impossible question to answer because there are so many factors to take into consideration.
As I look across the blogs that I am involved with (around 100 in number if you count b5media’s 80+ blogs) there is a massive variation in the earnings that blogs are pulling in. It is very difficult to make sense of it as it not just a matter of traffic levels.
For example - As I write this I’m looking at the earnings for January of three blogs that I have some involvement with (I don’t get into what specific blogs earn so don’t ask) and here’s what I see:
Blog A: For the month this blog had a total of around 20,000 page views from about half that number of visitors (ie they viewed 2 pages each. The Total earnings of this blog (all from contextual advertising) was $790.91 (USD).
Blog B: This blog had just over 40,000 page views over the month, this time from about 13,000 visitors. It’s total earnings from contextual advertising (same amount of ad units per pages as the other) was $99.08 (USD). it also earned around $35 from an affiliate program.
Blog C: Our last example is a blog that had around 160,000 page views over the month from around 80,000 visitors. It earned $515.12 from contextual ads and somewhere in the vicinity of $2,500 from affiliate programs.
Factors to Contribute to a Blog’s Earnings…
It’s pretty obvious from those figures that there is no ‘normal’ earnings based upon traffic alone. Many factors are obviously at play. Let me unpack a few:
1. Traffic Levels: While the above examples show that traffic is not the only factor at play in determining the earning capacity of a blog - it is a significant one. Whether you’re earning money from your blog directly or indirectly you are almost always going to increase your earning potential by increasing your readership.
2. Source of Traffic: Of course all not all traffic is equal when it comes to earning an income online. As I mentioned in this earlier post, blog traffic largely comes from a three sources - Loyal Readers (including RSS), Search Engines and Referral Traffic (from other sites).
Each type of traffic will have a different impact upon your earning potential depending upon your earning strategies. Lets look at each in turn:
A. Loyal Readers - loyal readers are a wonderful thing to have on a blog because they can add a sense of community and participation. In terms of income generation they are often good if you’re attempting to earn income from your blog via indirect methods. In my experience of picking up consulting and speaking work and even in developing products for sale - most the the opportunities have only come from established relationships that I’ve managed to build with readers.
Loyal Readers have also been known to respond to affiliate programs as a result of the trust and relationship that you might have built up with them over time. The longer term and more loyal your reader is the more weight your recommendation is likely to carry. Of course you won’t keep readers loyal for long if your recommendations are not on the money so be careful with that.
On the downside - loyal readers are generally not good for advertising in most forms. When a reader sees your blog every day Ad-blindness tends to kick in pretty quickly unless you’re pretty creative with your ads they often go unseen.
RSS readers are particularly difficult to monetize with ads on your blog as so many of them rarely see your blog if you publish full feeds rather than excerpts.
B. Search Engine Readers - readers coming to your blog after searching for a keyword you have used are a very different type of reader to the ‘loyal variety’ when it comes to what they respond to. Anecdotal evidence seems to indicate that visitors from SE’s quite often only stay on sites fleetingly. The typical SE users is in search of specific information and if they find it quickly they might stay for a little while but if they don’t they are likely to click on link to something else that might be a better source of information or hit their back button to return to the search engine.
This makes them almost the opposite of loyal readers in terms of indirect income earning methods. It’s very difficult to build your profile if people are one off 10 second readers (unless you’re good at making them come back).
When it comes to more direct income earning methods SE traffic is traditionally more responsive as they tend to be more aware of your ads (if they are well placed and designed) and they are actively looking for information and things to click on that might give them the info they are searching for. This is especially true for contextual advertising like AdSense which can show ads on your site that are triggered not only by what your content is about but on what people came to your blog searching for in Google (or so some people believe).
In terms of affiliate links - SE traffic is less likely to click them as a result of your profile but could be open to them more just because they are there. They can be hit and miss depending upon your topic
C. Referral Traffic - It is difficult to make generalizations about this category of traffic because it depends a lot on the type of site that is linking to you and the way in which they do it.
4.Income Stream:The actual method you use to monetize your blog impacts the amount you might earn. This is pretty obvious so I won’t go on about it too much but it’s worth saying here as it’s a definite factor in mix when looking at other factors.
5. Topic: In the three blogs that I mention above I would say the major difference in their earning capacity was their topic.
Why Topic Matters
Contextual Ads - Different topics and keywords within topics will trigger different ads in contextual ad programs and as a result will earn different levels ‘per click’ (I write about finding high paying ads in AdSense here).
Affiliate Programs - Similarly, different topics will open up different levels of earnings when it comes to affiliate programs. For example a blog about books that uses the Amazon program is only ever likely to make small commissions per sale as the average book might only be worth $20 and the commission with Amazon is generally in the 5-8% range. On the other hand I know of publishers in the financial website game who use affiliate programs that can pay out at $100 per sale.
Indirect Methods - Obviously different opportunities (with different income earning potential) arise for bloggers with a profile in different niches. For example a blogger known for his movie review blog might not have much demand for consulting work but could find a way to syndicate his blog to magazines or newspapers. A blogger with a good profile in the PR industry might not get picked up as a writer in magazines but could land himself a well paying job or some consulting work.
6. Age of Blog: - a good wine matures with age - as do many profitable blogs (and most profitable businesses for that matter). There are many reasons why this is the case and while some blogs do seem to rise from nowhere to dominate the blogosphere - most do not. Here’s a few reasons why blogs tend to get better with age:
Quantity of content - I find myself saying this to new bloggers repeatedly but don’t expect to get a lot of traffic to your blog until you have a substantial level of content in your archives. Of course quality of content is vital, but at least at some level numbers of posts do count and unless you’re going sell your soul and to get into splogging quantities of content take time. I’ve written more on this here and here (series).
Search Engine Optimization - While some SEO experts claim they can have you at the top of Search Engines quickly (and some can), sustaining high rankings through legitimate (white hat) methods means building a site over time. Climbing the rankings in SE’s is the result of many things including good content (lots of it) that gets links from others - both things that take time.
Reputation - Building an online profile and presence takes time n the same way that it takes time in real life. People look for consistency in your blogging overtime and will want to see that you not only talk the talk but walk the walk. As you do this you’ll find your readership grows.
Network - Connected with a good reputation comes networking opportunities. Two years ago if I had wanted to start a new blogging project with someone else I would have had little chance of convincing anyone to join me - but since that time I’ve worked hard at my relationships with fellow bloggers (and other online and offline contacts) to the point now where my problem is becoming too many opportunities to collaborate.
Web Smarts - I shudder when I look back at my first blogging efforts and how naive, ill-informed and poorly run they were. I have a long way to go when it comes to learning about the web, blogs, design, writing etc - but over time my own skills and knowledge in these areas have grown. You can read all the books, blogs and articles you want on blogging (and I’d encourage you to do so) - but so much of what you can learn about blogging for money has to come from on the job experience - which again only comes with time.
7. Time Invested: Lastly I’ll add that the time a blogger is willing and able to invest into their blog is a factor worth considering. I’m fortunate enough to have been able to work myself into a position where I can blog full time. This didn’t just happen overnight (I attempted to describe the process here) but as I was able to put more time into it the rewards increased. This is a bit of a catch 22 situation of course (the more you earn the more time you can put in and the more time you put in the more you can earn) but it’s a principle I’ve discovered that is worth adding into the mix.
So How Much Can a Blog Earn?
I’ve been avoiding the question for over 2000 words now and I’m not about to put a definitive answer on it except to say that every blog is different and the evidence that I’ve seen from interacting with thousands of bloggers and their blogs over the past year is that bloggers are earning anything between nothing at all and millions of dollars. The upper end of the spectrum is of course rare and those earning very little are in the majority, but bloggers earning decent income is becoming increasingly common. Here’s a couple of recent ProBlogger polls that might illustrate how the spectrum is spread in their earnings of AdSense and Chitika.
I’ll finish with this:
Probably the best way to find out what you can earn from a particular blog is to start that blog and test the waters.
Give yourself a time limit of a few months to get a feel for the topic and see how it goes. While it’s important to realize that a few months is not really enough - it is enough to get an understanding for whether it’s a topic you feel you can sustain, what the click values and CTR might be in contextual ads and even to get a feel for what type of readers you’ll attract. If the signs are good - invest more time into it - if they are not, consider trying something else.
6. Age of Blog: - a good wine matures with age - as do many profitable blogs (and most profitable businesses for that matter). There are many reasons why this is the case and while some blogs do seem to rise from nowhere to dominate the blogosphere - most do not. Here’s a few reasons why blogs tend to get better with age:
Quantity of content - I find myself saying this to new bloggers repeatedly but don’t expect to get a lot of traffic to your blog until you have a substantial level of content in your archives. Of course quality of content is vital, but at least at some level numbers of posts do count and unless you’re going sell your soul and to get into splogging quantities of content take time. I’ve written more on this here and here (series).
Search Engine Optimization - While some SEO experts claim they can have you at the top of Search Engines quickly (and some can), sustaining high rankings through legitimate (white hat) methods means building a site over time. Climbing the rankings in SE’s is the result of many things including good content (lots of it) that gets links from others - both things that take time.
Reputation - Building an online profile and presence takes time n the same way that it takes time in real life. People look for consistency in your blogging overtime and will want to see that you not only talk the talk but walk the walk. As you do this you’ll find your readership grows.
Network - Connected with a good reputation comes networking opportunities. Two years ago if I had wanted to start a new blogging project with someone else I would have had little chance of convincing anyone to join me - but since that time I’ve worked hard at my relationships with fellow bloggers (and other online and offline contacts) to the point now where my problem is becoming too many opportunities to collaborate.
Web Smarts - I shudder when I look back at my first blogging efforts and how naive, ill-informed and poorly run they were. I have a long way to go when it comes to learning about the web, blogs, design, writing etc - but over time my own skills and knowledge in these areas have grown. You can read all the books, blogs and articles you want on blogging (and I’d encourage you to do so) - but so much of what you can learn about blogging for money has to come from on the job experience - which again only comes with time.
7. Time Invested: Lastly I’ll add that the time a blogger is willing and able to invest into their blog is a factor worth considering. I’m fortunate enough to have been able to work myself into a position where I can blog full time. This didn’t just happen overnight (I attempted to describe the process here) but as I was able to put more time into it the rewards increased. This is a bit of a catch 22 situation of course (the more you earn the more time you can put in and the more time you put in the more you can earn) but it’s a principle I’ve discovered that is worth adding into the mix.
So How Much Can a Blog Earn?
I’ve been avoiding the question for over 2000 words now and I’m not about to put a definitive answer on it except to say that every blog is different and the evidence that I’ve seen from interacting with thousands of bloggers and their blogs over the past year is that bloggers are earning anything between nothing at all and millions of dollars. The upper end of the spectrum is of course rare and those earning very little are in the majority, but bloggers earning decent income is becoming increasingly common. Here’s a couple of recent ProBlogger polls that might illustrate how the spectrum is spread in their earnings of AdSense and Chitika.
I’ll finish with this:
Probably the best way to find out what you can earn from a particular blog is to start that blog and test the waters.
Give yourself a time limit of a few months to get a feel for the topic and see how it goes. While it’s important to realize that a few months is not really enough - it is enough to get an understanding for whether it’s a topic you feel you can sustain, what the click values and CTR might be in contextual ads and even to get a feel for what type of readers you’ll attract. If the signs are good - invest more time into it - if they are not, consider trying something else.
On one level it’s a valid question to ask - after all if you’re going to put time and energy into building something it’d be great to know up front what rewards might be awaiting you.
On another level - it’s an almost impossible question to answer because there are so many factors to take into consideration.
As I look across the blogs that I am involved with (around 100 in number if you count b5media’s 80+ blogs) there is a massive variation in the earnings that blogs are pulling in. It is very difficult to make sense of it as it not just a matter of traffic levels.
For example - As I write this I’m looking at the earnings for January of three blogs that I have some involvement with (I don’t get into what specific blogs earn so don’t ask) and here’s what I see:
Blog A: For the month this blog had a total of around 20,000 page views from about half that number of visitors (ie they viewed 2 pages each. The Total earnings of this blog (all from contextual advertising) was $790.91 (USD).
Blog B: This blog had just over 40,000 page views over the month, this time from about 13,000 visitors. It’s total earnings from contextual advertising (same amount of ad units per pages as the other) was $99.08 (USD). it also earned around $35 from an affiliate program.
Blog C: Our last example is a blog that had around 160,000 page views over the month from around 80,000 visitors. It earned $515.12 from contextual ads and somewhere in the vicinity of $2,500 from affiliate programs.
Factors to Contribute to a Blog’s Earnings…
It’s pretty obvious from those figures that there is no ‘normal’ earnings based upon traffic alone. Many factors are obviously at play. Let me unpack a few:
1. Traffic Levels: While the above examples show that traffic is not the only factor at play in determining the earning capacity of a blog - it is a significant one. Whether you’re earning money from your blog directly or indirectly you are almost always going to increase your earning potential by increasing your readership.
2. Source of Traffic: Of course all not all traffic is equal when it comes to earning an income online. As I mentioned in this earlier post, blog traffic largely comes from a three sources - Loyal Readers (including RSS), Search Engines and Referral Traffic (from other sites).
Each type of traffic will have a different impact upon your earning potential depending upon your earning strategies. Lets look at each in turn:
A. Loyal Readers - loyal readers are a wonderful thing to have on a blog because they can add a sense of community and participation. In terms of income generation they are often good if you’re attempting to earn income from your blog via indirect methods. In my experience of picking up consulting and speaking work and even in developing products for sale - most the the opportunities have only come from established relationships that I’ve managed to build with readers.
Loyal Readers have also been known to respond to affiliate programs as a result of the trust and relationship that you might have built up with them over time. The longer term and more loyal your reader is the more weight your recommendation is likely to carry. Of course you won’t keep readers loyal for long if your recommendations are not on the money so be careful with that.
On the downside - loyal readers are generally not good for advertising in most forms. When a reader sees your blog every day Ad-blindness tends to kick in pretty quickly unless you’re pretty creative with your ads they often go unseen.
RSS readers are particularly difficult to monetize with ads on your blog as so many of them rarely see your blog if you publish full feeds rather than excerpts.
B. Search Engine Readers - readers coming to your blog after searching for a keyword you have used are a very different type of reader to the ‘loyal variety’ when it comes to what they respond to. Anecdotal evidence seems to indicate that visitors from SE’s quite often only stay on sites fleetingly. The typical SE users is in search of specific information and if they find it quickly they might stay for a little while but if they don’t they are likely to click on link to something else that might be a better source of information or hit their back button to return to the search engine.
This makes them almost the opposite of loyal readers in terms of indirect income earning methods. It’s very difficult to build your profile if people are one off 10 second readers (unless you’re good at making them come back).
When it comes to more direct income earning methods SE traffic is traditionally more responsive as they tend to be more aware of your ads (if they are well placed and designed) and they are actively looking for information and things to click on that might give them the info they are searching for. This is especially true for contextual advertising like AdSense which can show ads on your site that are triggered not only by what your content is about but on what people came to your blog searching for in Google (or so some people believe).
In terms of affiliate links - SE traffic is less likely to click them as a result of your profile but could be open to them more just because they are there. They can be hit and miss depending upon your topic
C. Referral Traffic - It is difficult to make generalizations about this category of traffic because it depends a lot on the type of site that is linking to you and the way in which they do it.
4.Income Stream:The actual method you use to monetize your blog impacts the amount you might earn. This is pretty obvious so I won’t go on about it too much but it’s worth saying here as it’s a definite factor in mix when looking at other factors.
5. Topic: In the three blogs that I mention above I would say the major difference in their earning capacity was their topic.
Why Topic Matters
Contextual Ads - Different topics and keywords within topics will trigger different ads in contextual ad programs and as a result will earn different levels ‘per click’ (I write about finding high paying ads in AdSense here).
Affiliate Programs - Similarly, different topics will open up different levels of earnings when it comes to affiliate programs. For example a blog about books that uses the Amazon program is only ever likely to make small commissions per sale as the average book might only be worth $20 and the commission with Amazon is generally in the 5-8% range. On the other hand I know of publishers in the financial website game who use affiliate programs that can pay out at $100 per sale.
Indirect Methods - Obviously different opportunities (with different income earning potential) arise for bloggers with a profile in different niches. For example a blogger known for his movie review blog might not have much demand for consulting work but could find a way to syndicate his blog to magazines or newspapers. A blogger with a good profile in the PR industry might not get picked up as a writer in magazines but could land himself a well paying job or some consulting work.
6. Age of Blog: - a good wine matures with age - as do many profitable blogs (and most profitable businesses for that matter). There are many reasons why this is the case and while some blogs do seem to rise from nowhere to dominate the blogosphere - most do not. Here’s a few reasons why blogs tend to get better with age:
Quantity of content - I find myself saying this to new bloggers repeatedly but don’t expect to get a lot of traffic to your blog until you have a substantial level of content in your archives. Of course quality of content is vital, but at least at some level numbers of posts do count and unless you’re going sell your soul and to get into splogging quantities of content take time. I’ve written more on this here and here (series).
Search Engine Optimization - While some SEO experts claim they can have you at the top of Search Engines quickly (and some can), sustaining high rankings through legitimate (white hat) methods means building a site over time. Climbing the rankings in SE’s is the result of many things including good content (lots of it) that gets links from others - both things that take time.
Reputation - Building an online profile and presence takes time n the same way that it takes time in real life. People look for consistency in your blogging overtime and will want to see that you not only talk the talk but walk the walk. As you do this you’ll find your readership grows.
Network - Connected with a good reputation comes networking opportunities. Two years ago if I had wanted to start a new blogging project with someone else I would have had little chance of convincing anyone to join me - but since that time I’ve worked hard at my relationships with fellow bloggers (and other online and offline contacts) to the point now where my problem is becoming too many opportunities to collaborate.
Web Smarts - I shudder when I look back at my first blogging efforts and how naive, ill-informed and poorly run they were. I have a long way to go when it comes to learning about the web, blogs, design, writing etc - but over time my own skills and knowledge in these areas have grown. You can read all the books, blogs and articles you want on blogging (and I’d encourage you to do so) - but so much of what you can learn about blogging for money has to come from on the job experience - which again only comes with time.
7. Time Invested: Lastly I’ll add that the time a blogger is willing and able to invest into their blog is a factor worth considering. I’m fortunate enough to have been able to work myself into a position where I can blog full time. This didn’t just happen overnight (I attempted to describe the process here) but as I was able to put more time into it the rewards increased. This is a bit of a catch 22 situation of course (the more you earn the more time you can put in and the more time you put in the more you can earn) but it’s a principle I’ve discovered that is worth adding into the mix.
So How Much Can a Blog Earn?
I’ve been avoiding the question for over 2000 words now and I’m not about to put a definitive answer on it except to say that every blog is different and the evidence that I’ve seen from interacting with thousands of bloggers and their blogs over the past year is that bloggers are earning anything between nothing at all and millions of dollars. The upper end of the spectrum is of course rare and those earning very little are in the majority, but bloggers earning decent income is becoming increasingly common. Here’s a couple of recent ProBlogger polls that might illustrate how the spectrum is spread in their earnings of AdSense and Chitika.
I’ll finish with this:
Probably the best way to find out what you can earn from a particular blog is to start that blog and test the waters.
Give yourself a time limit of a few months to get a feel for the topic and see how it goes. While it’s important to realize that a few months is not really enough - it is enough to get an understanding for whether it’s a topic you feel you can sustain, what the click values and CTR might be in contextual ads and even to get a feel for what type of readers you’ll attract. If the signs are good - invest more time into it - if they are not, consider trying something else.
6. Age of Blog: - a good wine matures with age - as do many profitable blogs (and most profitable businesses for that matter). There are many reasons why this is the case and while some blogs do seem to rise from nowhere to dominate the blogosphere - most do not. Here’s a few reasons why blogs tend to get better with age:
Quantity of content - I find myself saying this to new bloggers repeatedly but don’t expect to get a lot of traffic to your blog until you have a substantial level of content in your archives. Of course quality of content is vital, but at least at some level numbers of posts do count and unless you’re going sell your soul and to get into splogging quantities of content take time. I’ve written more on this here and here (series).
Search Engine Optimization - While some SEO experts claim they can have you at the top of Search Engines quickly (and some can), sustaining high rankings through legitimate (white hat) methods means building a site over time. Climbing the rankings in SE’s is the result of many things including good content (lots of it) that gets links from others - both things that take time.
Reputation - Building an online profile and presence takes time n the same way that it takes time in real life. People look for consistency in your blogging overtime and will want to see that you not only talk the talk but walk the walk. As you do this you’ll find your readership grows.
Network - Connected with a good reputation comes networking opportunities. Two years ago if I had wanted to start a new blogging project with someone else I would have had little chance of convincing anyone to join me - but since that time I’ve worked hard at my relationships with fellow bloggers (and other online and offline contacts) to the point now where my problem is becoming too many opportunities to collaborate.
Web Smarts - I shudder when I look back at my first blogging efforts and how naive, ill-informed and poorly run they were. I have a long way to go when it comes to learning about the web, blogs, design, writing etc - but over time my own skills and knowledge in these areas have grown. You can read all the books, blogs and articles you want on blogging (and I’d encourage you to do so) - but so much of what you can learn about blogging for money has to come from on the job experience - which again only comes with time.
7. Time Invested: Lastly I’ll add that the time a blogger is willing and able to invest into their blog is a factor worth considering. I’m fortunate enough to have been able to work myself into a position where I can blog full time. This didn’t just happen overnight (I attempted to describe the process here) but as I was able to put more time into it the rewards increased. This is a bit of a catch 22 situation of course (the more you earn the more time you can put in and the more time you put in the more you can earn) but it’s a principle I’ve discovered that is worth adding into the mix.
So How Much Can a Blog Earn?
I’ve been avoiding the question for over 2000 words now and I’m not about to put a definitive answer on it except to say that every blog is different and the evidence that I’ve seen from interacting with thousands of bloggers and their blogs over the past year is that bloggers are earning anything between nothing at all and millions of dollars. The upper end of the spectrum is of course rare and those earning very little are in the majority, but bloggers earning decent income is becoming increasingly common. Here’s a couple of recent ProBlogger polls that might illustrate how the spectrum is spread in their earnings of AdSense and Chitika.
I’ll finish with this:
Probably the best way to find out what you can earn from a particular blog is to start that blog and test the waters.
Give yourself a time limit of a few months to get a feel for the topic and see how it goes. While it’s important to realize that a few months is not really enough - it is enough to get an understanding for whether it’s a topic you feel you can sustain, what the click values and CTR might be in contextual ads and even to get a feel for what type of readers you’ll attract. If the signs are good - invest more time into it - if they are not, consider trying something else.
Wednesday, September 5, 2007
Apple unveils new iPod with Wi-Fi
SAN FRANCISCO (Business 2.0) -- Apple announced Wednesday the first major overhaul of its popular iPod music digital players in nearly two years.
On top of iPods with more storage and bigger screens, Apple rolled out the iPod Touch, a slim, WiFi-enabled device that's similar to its new touchscreen mobile phone, the iPhone.
Apple CEO Steve Jobs speaking Wednesday in San Francisco, where he announced a major revamp of its iPod music players.
The company also announced a new version of its iTunes music store that will allow users to buy songs wirelessly. iTunes will also sell customizable 99-cent ringtones for the iPhone.
CEO Steve Jobs unveiled the new features at an invitation-only press conference held in San Francisco.
To date, Apple has sold more than 100 million iPods, but sales have been drifting since last year's holiday shopping season and profit margins are shrinking.
Jobs also announced a new version of the classic iPod. With a full metal design and thinner than its predecessor, a new $249 model comes with 80 gigabytes of storage and 30 hours of audio. A slightly thicker model will have 160 gigabytes of storage and retail for $349.
"This boggles the mind," Jobs said. He pointed out that the original iPod could hold up to 1,000 songs. Today, an iPod can store 40,000 songs.
The new Nano, meanwhile, will have video and a larger, brighter screen with an interface similar to the iPhone. Apple will also bundle three games into the new Nano, including Sudoku from Electronic Arts.
The new Nano will feature two memory sizes: A 4-gigabyte model for $149 and an 8-gigabyte model for $199. It will be sold in black, red, silver, blue and green.
Jobs said the new Nanos should be in stores by this weekend.
Wednesday's announcements come more than two months after Apple took on mobile phone giants Nokia (Charts) and Motorola (Charts, Fortune 500) with the iPhone, a touchscreen-only device that retails for $499 or $599, depending on the amount of memory.
Apple has said it expects to have sold one million iPhones by the end of September. Research firm iSuppli reported Tuesday that the iPhoneoutsold all other smartphones in July.
On top of iPods with more storage and bigger screens, Apple rolled out the iPod Touch, a slim, WiFi-enabled device that's similar to its new touchscreen mobile phone, the iPhone.
Apple CEO Steve Jobs speaking Wednesday in San Francisco, where he announced a major revamp of its iPod music players.
The company also announced a new version of its iTunes music store that will allow users to buy songs wirelessly. iTunes will also sell customizable 99-cent ringtones for the iPhone.
CEO Steve Jobs unveiled the new features at an invitation-only press conference held in San Francisco.
To date, Apple has sold more than 100 million iPods, but sales have been drifting since last year's holiday shopping season and profit margins are shrinking.
Jobs also announced a new version of the classic iPod. With a full metal design and thinner than its predecessor, a new $249 model comes with 80 gigabytes of storage and 30 hours of audio. A slightly thicker model will have 160 gigabytes of storage and retail for $349.
"This boggles the mind," Jobs said. He pointed out that the original iPod could hold up to 1,000 songs. Today, an iPod can store 40,000 songs.
The new Nano, meanwhile, will have video and a larger, brighter screen with an interface similar to the iPhone. Apple will also bundle three games into the new Nano, including Sudoku from Electronic Arts.
The new Nano will feature two memory sizes: A 4-gigabyte model for $149 and an 8-gigabyte model for $199. It will be sold in black, red, silver, blue and green.
Jobs said the new Nanos should be in stores by this weekend.
Wednesday's announcements come more than two months after Apple took on mobile phone giants Nokia (Charts) and Motorola (Charts, Fortune 500) with the iPhone, a touchscreen-only device that retails for $499 or $599, depending on the amount of memory.
Apple has said it expects to have sold one million iPhones by the end of September. Research firm iSuppli reported Tuesday that the iPhoneoutsold all other smartphones in July.
Friday, August 31, 2007
Indian economic boom continues
NEW DELHI, India (AP) -- India's economy grew 9.3 percent in the most recent quarter compared to the same quarter a year ago, boosted by robust manufacturing and services growth, the government said Friday, suggesting the momentum seen in the past year was continuing.
The growth in the April-June period -- this fiscal year's first quarter -- came despite a slew of tight money measures from the central bank, which were expected to dampen new investments and moderate growth.
India's gross domestic product grew 9.4 percent in the fiscal year ended March 2007, its strongest annual growth in 18 years, but the rapid expansion also came with higher inflation that stoked fears of overheating. Authorities have since been taking measures to cool the economy.
Friday's data from the Central Statistical Organization surpassed analysts' expectations and did not show much of a slowdown in economic activities.
The growth of GDP in the April-June period was slightly lower than expansion of 9.6 percent in the same quarter a year ago, but it was higher than growth of 9.1 percent recorded in the January-March period.
Manufacturing output expanded 11.9 percent in the April-June period, and services grew 10.6 percent. Agriculture, which continues to be a drag on the broader economy, did better than expected, growing 3.8 percent during the quarter.
Source: www.cnn.com/2007/BUSINESS/
The growth in the April-June period -- this fiscal year's first quarter -- came despite a slew of tight money measures from the central bank, which were expected to dampen new investments and moderate growth.
India's gross domestic product grew 9.4 percent in the fiscal year ended March 2007, its strongest annual growth in 18 years, but the rapid expansion also came with higher inflation that stoked fears of overheating. Authorities have since been taking measures to cool the economy.
Friday's data from the Central Statistical Organization surpassed analysts' expectations and did not show much of a slowdown in economic activities.
The growth of GDP in the April-June period was slightly lower than expansion of 9.6 percent in the same quarter a year ago, but it was higher than growth of 9.1 percent recorded in the January-March period.
Manufacturing output expanded 11.9 percent in the April-June period, and services grew 10.6 percent. Agriculture, which continues to be a drag on the broader economy, did better than expected, growing 3.8 percent during the quarter.
Source: www.cnn.com/2007/BUSINESS/
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