Page 24 - ARUBA TODAY

Wednesday 16 august 2017 BUSINESS
A24

Consumers go shopping; retail sales jumped 0.6% in July

By MARTIN CRUTSINGER For most of this year, retail gain in July sales showed sult since December. There are looking for growth to
AP Economics Writer sales have been lackluster, that consumer spending were sales gains in other ar- remain strong in the current
WASHINGTON (AP) — Con- including a decline in May was off to a good start for eas as well, including furni- July-September period, al-
sumers went out shopping of 0.2 percent and a mod- the third quarter. ture stores, hardware stores though some forecast a
in a big way in July, pushing est 0.3 percent June gain. “With the labor market and restaurants. slight slowdown from the
up retail sales by the largest Consumer spending ac- still adding jobs at a rapid The overall economy, as second quarter pace.
amount in seven months. counts for around 70 per- pace, consumption growth measured by the gross do- They ongoing strong gains
Retail sales advanced 0.6 cent of economic activity, looks set to remain strong mestic product, grew at a in employment will add
percent last month, the so the latest result is a good for at least the rest of this 2.6 percent annual rate in further fuel to consumer
best showing since a gain of sign for overall economic year,” Pearce said. the April-June quarter, a spending. The unemploy-
0.9 percent last December, growth. Michael Pearce, Sales got a boost in July significant rebound from ment rate in July dropped
the Commerce Depart- U.S. economist at Capital from a 1.2 percent jump in growth of just 1.2 percent in to a 16-year low of 4.3
ment reported Tuesday. Economics, said the strong auto sales, the strongest re- the first quarter. Economists percent.q
Air Berlin files for bankruptcy after shareholder pulls plug

By DAVID RISING airline after years of prop-
Associated Press ping it up.
BERLIN (AP) — Germany’s Air Berlin said that in light of
second largest airline, Air Etihad’s decision, it “came
Berlin, has filed for bank- to the conclusion that there
ruptcy protection after was no further positive way
its main shareholder, Abu ahead for Air Berlin.”
Dhabi-based Etihad, said Already the carrier had
it would make no more fi- been trying to ease its costs
nancing available follow- and lighten its debt load
ing years of unsuccessful of 1.2 billion euros after re-
turnaround attempts. porting a record loss of 782
The loss-making airline, million euros last year. In
which carries some 80,000 December, it reached a
people a day mostly on deal to lease 38 plans to
short-haul destinations, will Lufthansa’s units Eurowings
get a 150 million euro ($177 and Austrian Airlines.
million) government loan Etihad Airways said the
to keep flights running and bankruptcy filing was “ex-
not leave travelers strand- tremely disappointing for
ed during the peak sum- all parties,” especially as it
mer season. had supported the airline
“We’re in a time when over six years, but that it
many tens of thousands of A passenger passes an Air Berlin counter at Tegel airport in Berlin, Germany. Struggling German could not continue pump-
travelers and vacationers carrier Air Berlin says it’s filing for bankruptcy after its main shareholder, Abu Dhabi-based Etihad, ing money into a loss-mak-
are in multiple international said it would make no more financing available. The Economy Ministry and Transport Ministry said ing business.
holiday spots,” the German Tuesday Aug. 15, 2017 in a statement that the airline would get a loan of 150 million euros ($177 “As a minority shareholder,
Economy and Transport million) so that it can continue flights for the time being. Etihad cannot offer funding
Ministries said in a state- (Wolfgang Kumm/dpa via AP) that would further increase
ment Tuesday. “The return ture is uncertain. Rival Luf- blow” for Air Berlin’s more Zypries said that the bridge our financial exposure. We
flights of these travelers thansa, which is Germany’s than 7,000 employees. loan should give Air Berlin remain open to helping
back to Germany with Air biggest carrier, and anoth- “Our priority now lies with enough time to wrap up find a commercially viable
Berlin would not have been er unidentified airline are in securing the jobs,” said talks on the sale of some solution for all parties,” it
otherwise possible.” talks to take over some op- Christine Behle, a union operations. said. It said it had injected
The loan will allow Air Berlin erations. Winkelmann said board director. “Air Berlin The bankruptcy filing was 250 million euros of addi-
to operate until the end of the talks were “very well must proceed with trans- prompted by the decision tional funding into Air Ber-
November, its CEO Thomas advanced.” parency and provide all by Etihad, which holds a lin as recently as April and
Winkelmann said. Union ver.di called the important information.” 29.2 percent stake, to stop helped it “explore strategic
After that the airline’s fu- bankruptcy a “severe Economy Minister Brigitte funneling money into the options” for its business. q
American homebuilder sentiment climbs in August

By ALEX VEIGA this month. That’s up four our forecast for a gradual ing strong demand for sales gains have come
AP Business Writer points from a reading of strengthening in the hous- homes as the economy has amid a broader shortage
U.S. homebuilders are feel- 64 in July and the highest ing market,” said Robert Di- continued to create jobs. of previously occupied
ing more optimistic about level since May. Readings etz, the NAHB’s chief econ- The unemployment rate homes listed for sale, which
their sales prospects, re- above 50 indicate more omist. Readings gaug- is at a 16-year low of 4.3 has likely pushed more buy-
flecting a pickup in de- builders view sales condi- ing builders’ view of sales percent. New-home sales ers into new construction.
mand and positive ex- tions as good rather than now and over the next six edged up 0.8 percent in Even so, sales of new homes
pectations about further poor. The index has been months also rose from last June to a seasonally adjust- remain below historic aver-
growth the rest of this year. above 60 since September. month. A measure of traffic ed annual rate of 610,000. ages. Builders are contend-
The National Association of “The fact that builder con- by prospective buyers also Sales are up 10.9 percent ing with a lack of land for
Home Builders/Wells Fargo fidence has returned to increased. Sales of new U.S. so far this year. July new construction, a shortage of
builder sentiment index re- the healthy levels we saw homes are running ahead home sales data are due workers and rising costs for
leased Tuesday rose to 68 this spring is consistent with of last year’s pace, reflect- out next week. This year’s some materials.q