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U.S. NEWS A7
Friday 13 March 2015
US Financial Front:
Winter chills US economy, but slowdown should thaw
C. S. RUGABER prices. by weather — jumped 2.2 has downgraded his fore- porary.
AP Economics Writer A separate report Thurs- percent last month. It was cast to a tepid annual rate A similar trend occurred last
WASHINGTON (AP) — For a day showed, though, that the biggest gain in nearly a of between 1.5 percent year: The economy actu-
second year, harsh winter far fewer people applied year. and 1.8 percent. ally shrank in the first three
weather has kept Ameri- for unemployment benefits And restaurant sales, which That compares with 2.2 per- months of 2014, largely be-
cans away from shopping last week than in the pre- have been accelerating cent annual growth in last cause of brutal weather
centers, slowed home sales vious week. The report of- but are particularly weath- year’s fourth quarter and is from the “polar vortex.”
and weighed on U.S. eco- fered evidence that layoffs er-sensitive, fell by the larg- far below the blistering 4.8 Even so, employers kept
nomic growth. remain low and that the est amount in 13 months. percent pace last spring right on hiring, and the
Yet there may be little job market and the econo- The report on applications and summer. economy rebounded.
for unemployment aid Still, employers appear to Nearly 3.3 million more
showed that the number be looking past the cur- Americans are earning
of people seeking first-time rent soft spot. They added paychecks compared with
benefits plunged 36,000 an average of 288,000 a year ago.
last week to 289,000. The jobs a month from De- Those additional jobs are
drop reversed an increase cember through February, lifting total household in-
of 40,000 in the previ- evidence that they regard come — and spending
ous week. That jump was any slower growth as tem- power.q
probably weather-related,
A shopper carries JCPenney shopping bags, in New York. The given that low tempera-
Commerce Department released retail sales data for February tures and snowstorms shut
on Thursday, March 12, 2015. construction sites, closed
schools and caused a
(AP Photo/Mark Lennihan) wave of temporary layoffs.
Last week’s decline in ap-
cause for concern. The my are still solid. plications confirmed that
steadily strengthening U.S. The retail sales report employers are still confident
job market and low gas “doesn’t change our view enough in the economy to
prices suggest that the that the economic recov- hold on to their staffs. The
slowdown will likely prove ery is strengthening,” said number of people applying
temporary — just as a win- Paul Ashworth, chief U.S. for unemployment benefits
ter-related slump did last economist at Capital Eco- each week tends to reflect
year. nomics. the pace of layoffs.
Retail sales fell 0.6 percent “With the labor market on Joseph LaVorgna, an
in February, the govern- fire, we suspect that in- economist at Deutsche
ment said Thursday, the comes, and eventually Bank, calculates that last
third straight drop. Ameri- consumption too, will con- month was the coldest
cans cut back on car buy- tinue to grow at a healthy since December 2000,
ing by the most in more pace.” measured by the number
than a year. Sales also fell Details in the spending re- of days that households
at restaurants, home im- port supported the notion used an above-average
provement centers and that Americans are still amount of heat.
electronics and appliance willing to spend and that With spending weak, a
stores. The figures showed sales should rise along with strong dollar holding down
that consumers were slow temperatures. Spending in U.S. exports, and oil and
to boost spending despite a category that includes gas drillers cutting back
robust hiring in the past online and catalog retail- on investment, economists
year and sharply lower gas ers — which isn’t affected are marking down their
estimates for economic
growth in the current Janu-
ary-March quarter.
Jesse Hurwitz, an econo-
mist at Barclays Capital,
Friday 13 March 2015
US Financial Front:
Winter chills US economy, but slowdown should thaw
C. S. RUGABER prices. by weather — jumped 2.2 has downgraded his fore- porary.
AP Economics Writer A separate report Thurs- percent last month. It was cast to a tepid annual rate A similar trend occurred last
WASHINGTON (AP) — For a day showed, though, that the biggest gain in nearly a of between 1.5 percent year: The economy actu-
second year, harsh winter far fewer people applied year. and 1.8 percent. ally shrank in the first three
weather has kept Ameri- for unemployment benefits And restaurant sales, which That compares with 2.2 per- months of 2014, largely be-
cans away from shopping last week than in the pre- have been accelerating cent annual growth in last cause of brutal weather
centers, slowed home sales vious week. The report of- but are particularly weath- year’s fourth quarter and is from the “polar vortex.”
and weighed on U.S. eco- fered evidence that layoffs er-sensitive, fell by the larg- far below the blistering 4.8 Even so, employers kept
nomic growth. remain low and that the est amount in 13 months. percent pace last spring right on hiring, and the
Yet there may be little job market and the econo- The report on applications and summer. economy rebounded.
for unemployment aid Still, employers appear to Nearly 3.3 million more
showed that the number be looking past the cur- Americans are earning
of people seeking first-time rent soft spot. They added paychecks compared with
benefits plunged 36,000 an average of 288,000 a year ago.
last week to 289,000. The jobs a month from De- Those additional jobs are
drop reversed an increase cember through February, lifting total household in-
of 40,000 in the previ- evidence that they regard come — and spending
ous week. That jump was any slower growth as tem- power.q
probably weather-related,
A shopper carries JCPenney shopping bags, in New York. The given that low tempera-
Commerce Department released retail sales data for February tures and snowstorms shut
on Thursday, March 12, 2015. construction sites, closed
schools and caused a
(AP Photo/Mark Lennihan) wave of temporary layoffs.
Last week’s decline in ap-
cause for concern. The my are still solid. plications confirmed that
steadily strengthening U.S. The retail sales report employers are still confident
job market and low gas “doesn’t change our view enough in the economy to
prices suggest that the that the economic recov- hold on to their staffs. The
slowdown will likely prove ery is strengthening,” said number of people applying
temporary — just as a win- Paul Ashworth, chief U.S. for unemployment benefits
ter-related slump did last economist at Capital Eco- each week tends to reflect
year. nomics. the pace of layoffs.
Retail sales fell 0.6 percent “With the labor market on Joseph LaVorgna, an
in February, the govern- fire, we suspect that in- economist at Deutsche
ment said Thursday, the comes, and eventually Bank, calculates that last
third straight drop. Ameri- consumption too, will con- month was the coldest
cans cut back on car buy- tinue to grow at a healthy since December 2000,
ing by the most in more pace.” measured by the number
than a year. Sales also fell Details in the spending re- of days that households
at restaurants, home im- port supported the notion used an above-average
provement centers and that Americans are still amount of heat.
electronics and appliance willing to spend and that With spending weak, a
stores. The figures showed sales should rise along with strong dollar holding down
that consumers were slow temperatures. Spending in U.S. exports, and oil and
to boost spending despite a category that includes gas drillers cutting back
robust hiring in the past online and catalog retail- on investment, economists
year and sharply lower gas ers — which isn’t affected are marking down their
estimates for economic
growth in the current Janu-
ary-March quarter.
Jesse Hurwitz, an econo-
mist at Barclays Capital,
