Page 7 - Aruba Today

U.S. NEWS A7
Tuesday 3 November 2015

US Financial Front:

American factories grow at slowest pace in 2½ years; hiring falls

day that its index of factory that business may pick up Sharp declines in oil and
activity slipped to 50.1 in in coming months. And a
October from 50.2 in Sep- gauge of production rose natural gas prices have led
tember. The figures barely for the first time since July.
signal growth, which is any “We’re hopeful this will drilling companies to re-
reading above 50. mark the low,” Ian Shep-
U.S. manufacturers have herdson, an economist at duce orders for steel pipe
been squeezed this year Pantheon Macroeconom-
as a strong dollar and ics, said in a note to cli- and other equipment used
weak economies in Chi- ents. “It looks as though the
na and other key foreign downshift in manufacturing to build rigs. That trend,
markets have cut into ex- activity may be coming to
ports. A high dollar makes an end.” combined with the strong
U.S. goods pricier overseas Both manufacturers and
while lowering prices for their customers are cutting dollar, has helped lower
imports that compete with back on stockpiles, which
American products. slows production as com- the ISM’s index from rough-
Monday’s report showed panies sell existing goods
that a measure of hiring fell rather than order new ly 57 late last year to 50.1.
sharply, from 50.5 to 47.6. ones. But that trend slowed
That means manufacturers last month and may soon The ISM is a trade group of
cut jobs last month. be complete, said Brad-
Still, the report contained ley Holcomb, chair of the purchasing managers.
some bright signs: New or- ISM’s manufacturing survey
ders jumped, suggesting committee. Strong car sales, which

are running at their high-

Oil field workers drill into the Gypsum Hills near Medicine Lodge, est level in a decade, are
Kan. U.S. factory activity grew in October 2015 at its slowest
pace since May 2013, the Institute for Supply Management one of the few trends that
reported Monday, Nov. 2, 2015, as manufacturers pared their
stockpiles and cut jobs. Sharp falls in oil and natural gas prices are working in the opposite
have caused drilling firms to cut back on orders for steel pipe
and other equipment used to build rigs. direction and boosting fac-

(AP Photo/Orlin Wagner) tory output.

A slowdown in China, the

world’s second-largest

economy, has delivered a

C.S. RUGABER since May 2013 as manu- direct hit on construction
AP Economics Writer facturers pared their stock-
WASHINGTON (AP) — U.S. piles and cut jobs. equipment makers such as
factory activity grew last The Institute for Supply
month at its slowest pace Management said Mon- Caterpillar. q

US construction spending rises
0.6 percent during September

PAUL WISEMAN
AP Economics Writer
WASHINGTON (AP) — U.S. construction spending rose 0.6
percent in September to the highest level since March
2008, pushed up by a surge in apartment building.
The Commerce Department said Monday that spending
on construction rose to a seasonally adjusted annual rate
of $1.09 trillion. Construction of apartments and condo-
miniums jumped 4.9 percent in September from August,
while construction of single-family homes rose 1.3 per-
cent. Overall, private residential construction rose to the
highest level since January 2008.
The housing market has proven relatively resilient this year
amid economic weakness overseas that has hurt Ameri-
can manufacturers and limited hiring. Commerce report-
ed last week that private investment in housing grew at
an annual pace of 6.1 percent from July through Septem-
ber — four times the 1.5 percent growth registered by the
overall economy.
Spending on nonresidential construction slipped 0.1 per-
cent in September, Commerce said. But spending on
construction of churches and other religious buildings
rose 5.6 percent.
Public construction grew 0.7 percent from August. Spend-
ing on schools and other educational buildings rose 2.4
percent, and spending on water supply facilities was up
4.8 percent.q