Page 25 - ARUBA TODAY

BUSINESS Thursday 7 sepTember 2017
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US services sector expanded at stronger rate in August

By JOSH BOAK had been the lowest since of about 2.5 percent. storms, the non-manufac- Still, the stronger growth fol-
AP Economics Writer the index registered 51.7 in But those gains could drop turing sector was in good lows a sluggish start to 2017.
WASHINGTON (AP) — U.S. August 2016. Still, anything off due to short-term set- shape,” Shepherdson said. The growth rate in the Jan-
services businesses grew above 50 signals growth. backs caused by Harvey The Commerce Depart- uary-March quarter was a
at a faster pace in August The services sector has and, possibly, Irma, said Ian ment said last week that lackluster 1.2 percent.
as measures for new or- expanded for 92 straight Shepherdson, chief econo- gross domestic product, The ISM survey showed
ders and hiring improved, months. mist at Pantheon Macro- the broadest measure of that 15 services industries
though some of those gains The gains in hiring, new or- economics. economic health, expand- reported gains in August,
could disappear temporar- ders and production point After Hurricane Katrina ed at an annual rate of 3 including retails, real estate
ily in the wake of damage to continued economic struck in 2005, the services percent in the April-June and accommodation and
from Harvey. growth. Anthony Nieves, index and its hiring compo- quarter. This was the best food services. Just two sec-
The Institute for Supply Man- chair of ISM’s non-man- nent both fell. performance since early tors contracted: agriculture
agement said Wednesday ufacturing survey com- “We tentatively expect 2015 as growth for the and transportation.Private
that its services index rose mittee, says the current bigger declines this time April-June quarter was re- service-sector workers ac-
in August to 55.3 from 53.9 reading corresponds with around, but the key point vised upward from an initial count for more than 70 per-
in July. The July reading annual economic growth for now is that ahead of the reading of 2.6 percent. cent of American jobs.q
United Continental cuts outlook on Harvey impact, fuel costs

By DAVID KOENIG war with Spirit Airlines in
AP Airlines Writer Chicago, Denver, Houston
DALLAS (AP) — United Air- and Newark, New Jersey.
lines said Wednesday that United is fighting the dis-
Hurricane Harvey and a count airlines by rolling out
fare war contributed to a so-called basic economy
loss of $400 million in ex- fares, which offer passen-
pected revenue, and the gers a lower price but few-
storm saddled the com- er amenities — they can’t
pany with higher prices for even stow a bag in the
jet fuel. overhead bin.
The company said that a For United, there was a
key revenue-per-seat fig- hitch this summer: The air-
ure would fall by up to 5 line lost customers to other
percent for the third quar- big carriers that didn’t have
ter. Shares of United Conti- similar basic-economy tick-
nental Holdings Inc. slipped ets on many routes, Chief
in afternoon trading. Financial Officer Andrew
Southwest Airlines Co. said Levy said at a Cowen and
Harvey shaved up to $60 Co. investor conference in
million from its revenue, Boston.
and it too slightly lowered For example, if United
expectations for the quar- A United Airlines plane is towed at George Bush Intercontinental Airport in Houston. United Airlines sold basic economy for
ter that ends Sept. 30. said Hurricane Harvey and a fare war contributed to a loss of $400 million in expected revenue, $200 and American Air-
and the storm saddled the company with higher prices for jet fuel.
Harvey — and now Hurri- (AP Photo/David J. Phillip) lines matched the fare for
cane Irma spinning through a better regular economy
the Caribbean — are United suffered more than ly a week by flooding. The Chicago-based com- seat, customers would pick
back-to-back setbacks for any other airline from Har- United canceled 7,400 pany said the revenue the $200 ticket with fewer
airlines that were already vey’s deluge. The Conti- flights because of the shortfall was due to Har- limits on American.
dealing with lower average nental side of the com- storm, and it doesn’t ex- vey’s canceled flights, fall- Delta pioneered basic
ticket prices. In the last two pany has longtime roots pect to resume a full, pre- ing demand in Guam since economy, but American
days, Delta Air Lines Inc., in Houston, and United still storm Houston schedule North Korea threatened didn’t go beyond a trial
JetBlue Airways Corp. and operates one of its biggest until later this week. Even that its missiles could strike run until Tuesday. Levy
Spirit Airlines Inc. also low- hub operations at Bush then, Houstonians might be near the U.S. territory in the said United will temporarily
ered their outlook for third- Intercontinental Airport, traveling less than before, Pacific, and lower prices. scale back its own basic-
quarter revenue. which was closed for near- the airline said. United is locked in a fare economy program..q
US trade deficit widened slightly in July as exports slipped

By CHRIS RUGABER slid $400 million to $238.1 are expanding simultane- seas than from the U.S. cals, petroleum, and plas-
AP Economics Writer billion. ously. Exports in June were In July, exports of chemi- tics fell. q
WASHINGTON (AP) — The The trade deficit had nar- the highest in 2 ½ years.
U.S. trade deficit increased rowed in the spring as Still, the trade gap this year
slightly in July as exports exports of U.S. computer is running ahead of last
slipped a bit more than im- products and farm goods year’s level as rising con-
ports. rose. U.S. exporters bene- sumer spending and great-
The Commerce Depart- fited from a decline in the er business investment
ment said Wednesday that value of the dollar, which draws in more imports.
the trade gap reached makes American products A larger trade deficit typi-
$43.7 billion in July, up from cheaper overseas. Solid cally translates into slower
$43.5 billion in June. Exports global growth also helped, U.S. growth, because it
declined $600 million to as economies from Europe means Americans are buy-
$194.4 billion, while imports to Asia to Latin America ing more goods from over-