Page 25 - atoday

BUSINESS A25
Thursday 3 March 2016

Fed survey finds weaker exports hurting manufacturers

M. CRUTSINGER leave a key interest rate

AP Economics Writer unchanged.

WASHINGTON (AP) — The The Fed survey found that

economy was expand- while consumer inflation

ing in most of the country was holding steady, wage

in January and February, growth varied considerably

helped by gains in con- from flat to strong. The cen-

sumer spending and home tral bank is hoping that ris-

sales. But there were also ing employment will boost

rising headwinds from fall- pay, which has lagged

ing oil prices and a strong since this recovery began

dollar that held back some in mid-2009. And Fed of-

sectors, the Federal Re- ficials believe that rising

serve said Wednesday. wages will help lift inflation

The Fed’s latest survey closer to the Fed’s target of

of business conditions in its prices increases around 2

12 regions found moder- percent per year. Inflation

ate gains in most regions. has been running below

Two areas — New York and that level for the post three

Kansas City — described years.

activity as flat. Kansas City, Economists said the find-

a region hurt by weakness ings in the Fed survey sup- People dine in outdoor cafes and walk along Lincoln Road Mall, a pedestrian area featuring retail
in energy and farming, re- ported their view that the shops and restaurants in Miami Beach, Fla. On Wednesday, March 2, 2016, the Federal Reserve
ported a modest decline. economy is avoiding a re- released its latest “Beige Book” survey of economic conditions.
The Fed survey, known as cession despite the turbu-
(AP Photo/Lynne Sladky)

the ‘Beige Book,’ will be lence. are more than enough to housing market and com- tinue to lead growth in ear-
discussed at the central “Trade and energy re- offset these,” said Stuart mercial construction con- ly 2016.”
bank’s next meeting on main the most significant Hoffman, chief economist
March 16-17. Most econo- drags on growth but the at PNC Financial Services. Open House
mists expect the Fed to positives for the economy “Consumer spending, the
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M. CRUTSINGER For January, home building in the smaller apartment

AP Economics Writer activity showed no gain, sector.

WASHINGTON (AP) — U.S. but spending on nonresi- The gain in nonresidential

construction spending in- dential projects rose 1 per- building was led by a 6.7

creased in January by the cent following two months percent jump in construc-

largest amount in eight of declines. Spending on tion of hotels and motels.

months as weakness in government projects in- Spending on office build-

homebuilding was offset creased 4.5 percent with ings was up but spending

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increased 1.5 percent in The flat reading for residen- cal government projects Thursday, March 3, 2016 from 4 to 5:30 p.m.
January, the biggest gain tial construction reflected rose 4.4 percent while at:
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this week. The advance

pushed total spending to a

seasonally adjusted $1.14

trillion in January, the high-

est level in more than eight

years.

Economists are optimistic

that construction will con-

tinue to show solid gains

this year, helping to boost

overall economic growth.