Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Energy is an important business input- duh!

Jan 20, 2004 ALL BUSINESS: Soaring Energy Prices Could Hurt Economy -By Rachel Beck - The Associated Press

NEW YORK (AP) - The troubled labor market might not be the only thorn in the economy's side. Surging energy prices could also do their part to throw the recovery off its course.
In past recoveries, lower energy prices have helped boost the economy as it bounced from a prolonged slump. But we don't have that happening this go-around - in fact, prices are unexpectedly high, due to the troubling mix of shrinking supplies, a cold winter and the weak dollar. The big concern is whether prices will stick at these levels, and if that happens, how much - if anything - they'll knock out of economic growth. "Higher energy prices act like higher taxes on the economy," said Patrick Fearon, an economist at A.G. Edwards & Sons in St. Louis. "So far, this hasn't had a big impact, but it's something that must be watched."