Page 7 - atoday
P. 7
U.S. NEWS A7
Friday 2 October 2015
US Financial Front:
Manufacturing barely expands as global economy slows
A Boeing employee works on a horizontal stabilizer for a New orders and produc- sharply lower oil prices. 15-year low.
tion both fell sharply and The report “is yet another Yet China’s factory activ-
Boeing 787 Dreamliner, at Boeing in Salt Lake City. The a measure of hiring also illustration of the devastat- ity contracted again last
declined, according to ing impact that the strong month, according to a
Institute for Supply Management, a trade group of purchasing the ISM, a trade group of dollar and weak foreign survey of its purchasing
purchasing managers. All demand is having on the managers. Its manufac-
managers, issued its index of manufacturing activity for three measures still barely battered factory sector,” turing index inched up to
remained in expansion ter- Steve Murphy, an econo- 49.8 from 49.7 in August.
September on Thursday, Oct. 1. (AP Photo/Rick Bowmer) ritory. mist at Capital Econom- Bradley Holcomb, chair of
U.S. manufacturers are get- ics, said. “Things might well the ISM’s survey commit-
C. S. RUGABER The Institute for Supply ting hit by slower growth in get even worse before tee, said that uncertainty
AP Economics Writer Management said Thurs- China, the world’s second- they begin to get better. around precisely how bad-
WASHINGTON (AP) — U.S. day that its index of factory largest economy, and Nevertheless, the ... incom- ly China’s economy is slow-
manufacturers expanded activity fell sharply to 50.2 a stronger dollar, which ing data on the rest of the ing, and about the Federal
at their slowest pace in in September from 51.1 in makes U.S. goods more economy are still incredibly Reserve’s next moves, are
two years last month, held August. That is the lowest expensive overseas. The upbeat.” Sales of existing also weighing on manu-
back by faltering global level since May 2013. Any 15 percent rise in the dol- homes reached an eight- facturers. The weakness
growth and cutbacks in oil reading above 50 indi- lar’s value in the past year year high in July before was widespread. Only
and gas drilling. cates expansion. has also made imports slipping in August. Ameri- seven industries out of 18
cheaper compared with cans are also getting more tracked by the index ac-
U.S.-made goods. Oil and confident in the economy tually reported growth, in-
gas drillers are also cut- and consumer spending cluding printing, textiles,
ting back on their orders has been solid. The number furniture, food and bever-
for steel pipe and other of people seeking unem- ages, paper products and
equipment in the wake of ployment benefits is near a minerals.q
Applications for jobless aid
rise, but remain near lows
JOSH BOAK have yet to be frightened
AP Economics Writer off by the slowdown in Chi-
WASHINGTON (AP) — Ap- na’s economy and fierce
plications for unemploy- sell-offs in the U.S. stock
ment benefits rose last market.
week, but Americans are “Filings at this level are in-
seeking jobless aid at his- credibly low by historical
torically low levels con- standards,” said Stephen
sistent with a healthy job Stanley, chief economist
market. at Amherst Pierpont Securi-
The Labor Department ties. “In fact, there has not
said Thursday that weekly been a single weekly read-
applications for jobless aid ing above 300,000 since
rose 10,000 to a season- February.”
ally adjusted 277,000. The The drop in weekly applica-
four-week average, a less tions has reduced the total
volatile figure, declined to number of people receiv-
270,750. ing benefits. There are 2.19
Applications are a proxy million Americans collect-
for layoffs. The low level of ing jobless aid, the small-
applications indicates that est total since November
companies trust that the 2000. Jobless claims aver-
U.S. economy will continue aging less than 300,000 a
to expand and will possi- week have corresponded
bly boost hiring. The report with net monthly job gains
indicates that employers of roughly 200,000.q
