Page 7 - ATD16APRIL2016

U.S. NEWS A7
Saturday 16 April 2016

US Financial Front:
Factory output drops again, but signs of stability appearÂ

Aluminum Bud Light bottles move along a conveyor at a plant manufacturing 16-ounce Bud- currencies. That makes trade group of purchasing
weiser and Bud Light aluminum bottles for Anheuser-Busch, in Arnold, Mo. On Friday, April 15, U.S. products more ex- managers, said that its sur-
2016, the Federal Reserve reported on U.S. industrial production for March. pensive overseas and im- vey showed manufacturers
ports cheaper. Meanwhile, expanded in March.
(AP Photo/Jeff Roberson) Americans have been re- The Fed’s industrial produc-
luctant to spend freely this tion report is a direct mea-
C. S. RUGABER malaise could brighten in overseas growth, the strong year despite steady job sure of output rather than a
AP Economics Writer the coming months. dollar and sluggish con- gains and lower prices at survey.
WASHINGTON (AP) — U.S. Factory production fell 0.3 sumer and business spend- the gas pump. Some economists, howev-
factory output dropped percent last month, follow- ing at home. Automakers Factory output rose just 0.6 er, noted that the surveys
in March for the second ing a 0.1 percent drop in cut back sharply, as sales percent at an annual rate may be a better indication
straight month as manu- February, the Federal Re- slowed last month after a in the first three months of of future trends.
facturers churned out serve said Friday. record 2015. this year. That’s below the “This should be the final
fewer cars, metal parts Those figures suggest that While the dollar has slipped sluggish 0.8 percent rise in grim (industrial production)
and machinery. Yet other American manufacturers in recent weeks, it has risen all of 2015, which was the report,” Ian Shepherdson,
recent data suggests that are still struggling with the in value in the past year smallest boost in output chief economist at Panthe-
the sector’s long-running triple whammy of weak compared with foreign since the recession ended on Macroeconomics, “with
in 2009. the next few months likely
But Greg Daco, an econo- to see manufacturing out-
mist at Oxford Econom- put rebounding modestly.”
ics, pointed out that only Overall industrial produc-
about a third of manufac- tion, which includes mining
turing is contracting, far be- and utilities, fell 0.6 percent
low the one-half that typi- for the second straight
cally shrinks in recessions. month. Amid lower oil pric-
Another factory report re- es, a sharp drop in oil and
leased Friday suggested gas drilling activity pulled
that goods production in down mining output 2.9
the U.S. could be stabiliz- percent.
ing. The New York Federal That was the sharpest fall
Reserve’s Empire State in- in mining output since Sep-
dex, based on a survey of tember 2008 when hurri-
manufacturers in the state, canes hurt oil and gas pro-
rose in April to its highest duction. Mining was also hit
level in more than a year. by a substantial decline in
And earlier this month, the coal output, which is suffer-
Institute for Supply Man- ing from lower natural gas
agement, a nationwide prices.q

US retail sales fall in March as Americans buy fewer carsÂ

C. S. RUGABER and catalog stores. Car purchases have slowed chains such as Walmart that spending on services
AP Economics Writer Overall retail sales fell by a this year after reaching re- and Target, also posted has growth at a 3 percent
WASHINGTON (AP) — seasonally adjusted 0.3 per- cord levels in 2015. higher sales. clip this year, offsetting
U.S. retail sales fell last cent in March, the Com- Still, there were some faint The retail report provides some of the weakness in re-
month as Americans cut merce Department said signs of consumer health in the first indication each tail.
back on their car pur- this week, following a flat the report. month of Americans’ “With employment gains
chases, the latest sign that reading in February and a Excluding autos and gas, spending, which drives still healthy and real in-
consumers are reluctant to drop in January. sales trends look healthi- 70 percent of the econo- comes growing at a solid
spend freely. Americans have been more er, rising 0.1 percent last my. Retail sales account pace, we expect con-
A 2.1 percent plunge in cautious about spending month and 0.6 percent in for only about one-third of sumption growth to re-
auto sales — the steepest this year than most econo- February. all spending, with services bound further over the first
such fall in more than a year mists expected, despite Sales in March jumped 1.4 such as haircuts and Inter- half of the year,” Murphy
— accounted for most of steady job gains and lower percent at home supply net access making up the said in a note to clients.
last month’s drop. But sales gas prices. That’s a key rea- stores, and rose at furniture, other two-thirds. Sales at gas stations rose
were weak in some other son why analysts now think electronics and healthre- Steve Murphy, an econo- by the most since June, re-
sectors, including clothing, the economy barely ex- tailers. General merchan- mist at forecasting firm flecting recent increases in
restaurants, and at online panded in the first quarter. dise stores, which include Capital Economics, said oil and gas prices.q