Page 7 - atoday
P. 7
U.S. NEWS A7
Thursday 15 October 2015
US Financial Front:
Fed says consumer spending, auto sales boost US growth
C. S. RUGABER A shopper checks out at a Wal-Mart Neighborhood Market store in Bentonville, Ark. The Federal beige book said. The Bos-
AP Economics Writer Reserve on Wednesday, Oct. 14, 2015 said steady consumer spending and an improving ton Fed said that adver-
WASHINGTON (AP) — housing market spurred modest U.S. economic growth in the late summer, though factory output tising and consulting firms
The Federal Reserve says was sluggish in part because of the strong dollar. were planning to add
steady consumer spend- jobs, while manufacturers
ing and an improving (AP Photo/Danny Johnston) were laying off workers.
housing market spurred Yet even as job gains were
modest U.S. economic most analysts expect that boosted their spending, in the Richmond, Atlanta, steady, wage growth “re-
growth in the late sum- likely because of solid hir- Chicago and Dallas dis- mained subdued” in most
mer, though factory out- if an increase does occur ing in the past year that tricts. regions, the Fed’s report
put was sluggish in part has put 2.8 million people Hiring rose at a modest to said. Eight districts said
because of the strong dol- this year, it will happen in to work. Auto sales were moderate pace in nine of that only slight to modest
lar. even stronger, particularly the 12 bank districts, the pay gains occurred from
The Fed said Wednesday December rather than this mid-August through early
in its latest snapshot of the October.
economy that nine of its month. Steep drops in oil and gas
12 regional banks report- prices in the past year
ed that growth was mod- Americans generally continued to weigh on
erate or modest from mid- many energy producers,
August through the be- which are still cutting jobs
ginning of October. Two in Texas, the Dallas Fed
banks said economic ac- said. Oil and gas drillers
tivity increased while the are also ordering less steel
Kansas City Fed said the pipe and other equip-
economy slowed slightly. ment, dragging down
The Fed’s report echoes factory output, according
other recent data that to many districts.
suggests the U.S. econo- Manufacturers are also
my, while still expanding, struggling because of the
has run into headwinds strong dollar, which has in-
from overseas and lost creased about 13 percent
some momentum. Most in value against a basket
analysts forecast that of other currencies in the
growth will fall sharply in past 12 months.q
the July-September quar-
ter to an annual pace of US producer prices fell in September on cheap gas
about 1.5 percent from
3.9 percent in April-June. JOSH BOAK prices tumbled 0.3 percent 0.8 percent. rate hike at their Oct. 27-
The report, known as the AP Economics Writer in September. Consumer prices, mean- 28 meeting. Many analysts
beige book, will be used WASHINGTON (AP) — Prices All of this suggests that the while, have barely risen. Ac- had anticipated that the
by Fed policymakers as fell for manufacturers, farm- Federal Reserve may delay cording to the Federal Re- Fed would increase short-
a basis for discussing the ers and other producers in on an expected rate hike serve’s preferred measure, term interest rates at its Sep-
economy’s health when September, as lower energy until signs of inflation ap- they increased just 0.3 per- tember meeting for the first
they meet next on Oct. 27- costs have limited broader pear. “The economy is stuck cent in August from a year time in nine years. But the
28. The beige book is re- inflation. and deflation pressures are earlier. Excluding the vola- U.S. central bank held off
leased eight times a year The Labor Department said the key risk,” said Steven tile categories of food and amid concerns about Chi-
and consists of anecdotal Wednesday that the pro- Ricchiuto, chief economist energy, core prices have na’s economy growing at a
reports from businesses in ducer price index, which at Mizuho Securities. risen a gentle 1.3 percent slower pace and sharp vol-
each of the 12 districts. measures price changes Wholesale prices have de- in the 12 months ending in atility in the U.S. stock mar-
Fed Chair Janet Yellen before they reach the con- creased 1.1 percent from a August. ket. The Fed has said that it
has said the Fed may raise sumer, dropped 0.5 percent year ago, with September Those inflation figures are needs to feel “reasonably
short-term interest rates last month after being un- marking the eighth straight far from the Fed’s 2 per- confident” that inflation will
before the end of the changed in August. Exclud- 12-month decline. Gasoline cent inflation target, a gap move back to its 2 percent
year should the economy ing the volatile food and costs fell a sharp 16.6 per- that could cause Fed poli- target before beginning to
continue to expand. Yet energy categories, core cent, while food prices slid cymakers to postpone a raise interest rates.q
