Page 7 - Aruba Today
P. 7
U.S. NEWS A7
Tuesday 26 January 2016
US Financial Front:
Business economists expect slower sales, economic growth
C. S. RUGABER the economy at the start of An iron worker works on a building under construction in Phila- big stock market drops
AP Economics Writer 2016. Fewer than half the delphia. Business economists are more pessimistic about their that have occurred since
WASHINGTON (AP) — Busi- economists expect sales at firms’ future sales and profits than they were in the fall of 2015, the year began, and 148
ness economists are more their firms to rise in the first and more predict slower economic growth at the start of 2016, economists responded.
pessimistic about their quarter, the smallest pro- a survey found. There were some positive
firms’ future sales and prof- portion since January 2015. signs in the results. In addi-
its than they were last fall, And nearly 20 percent ex- (AP Photo/Matt Rourke) tion to the planned wage
and more predict slower pect profits to fall, the most increases for the first quar-
economic growth, a survey in more than a year. ed from Dec. 17 through Jan. 5, mostly before the ter, nearly half of the econ-
found. For the first time in three omists said their firms had
At the same time, a major- years, more than 25 per- already raised pay in the
ity of economists surveyed cent of the economists final three months of 2015.
by the National Association forecast that growth will That’s the highest percent-
for Business Economics said slip below 2 percent over age in more than a de-
their firms plan to raise wag- the next year. As recently cade.
es in the January-March as April, 30 percent ex- And one-third of respon-
quarter. That is the largest pected growth would top dents said their firms
proportion that expects to 3 percent in the following planned to add jobs in
raise pay since mid-2014. 12 months. That figure fell to the next three months,
Aside from the planned just 4 percent in the current up from 29 percent in the
pay rise, the survey paints survey. fall. The number planning
a mostly gloomy view of The survey was conduct- to cut jobs also rose, to 15
percent.q
Ford cites market conditions,
pulls out of Japan, Indonesia
TOM KRISHER government of protect-
AP Auto Writer
DETROIT (AP) — Ford Motor ing domestic brands. The
Co. is pulling out of Japan
and Indonesia, saying that company in an emailed
market conditions in each
country have made it dif- statement said that the de-
ficult to grow sales or make cision was communicated
sustained profits. to employees and dealers
“Japan is the most closed, on Monday. Ford will exit
developed auto economy the countries before the
in the world, with all im- end of the year and plans
ported brands accounting to explain to customers its
for less than 6% of Japan’s commitment to servicing
annual new car market,” cars, providing parts and
spokesman Neal McCarthy making warranty repairs.
wrote in an email message. McCarthy said auto sales
The 12-nation Trans Pacific are expected to decline in
Partnership trade agree- Japan in the coming years.
ment in its current form will Analysts have said that’s
not improve Ford’s ability due to an aging popula-
to complete there, he said. tion and declining interest
Congress could vote on in cars among younger
the pact this year. people in urban areas. In
Neither market is large Indonesia, it was difficult
for the Dearborn, Michi- for Ford to compete with-
gan, automaker. Last year out local manufacturing
Ford sold only 6,100 cars and vehicles to sell in key
and trucks in Indonesia market segments, McCar-
and only 5,000 in Japan, thy said. Ford has restruc-
where it has accused the tured its business there but
still has less than 1 percent
of the market with “no rea-
sonable path to sustained
profitability,” he said.q
