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Saturday 1 april 2017 BUSINESS
A24

Sale of ex-Trump Taj Mahal casino to Hard Rock is finalized

WAYNE PARRY Rock, which manages a 10 percent ownership court judge to eliminate It is likely to feature plenty
Associated Press gambling and resort oper- stake in its parent compa- in 2014. Hard Rock plans a of guitars, big and small, in-
ATLANTIC CITY, N.J. (AP) — ations for the Seminole Indi- ny in return for the use of press conference Wednes- side and out. The guitar has
It’s official: Atlantic City’s an tribe, bought the casino his name. Icahn closed it in day to unveil its plans for become the symbol of the
former Trump Taj Mahal ca- March 1 from billionaire in- October after a devastat- the casino, which it wants Hard Rock chain, and the
sino now belongs to Hard vestor Carl Icahn. ing strike by union workers to reopen next spring. company says it owns the
Rock International. Icahn is a close friend and seeking the restoration of The purchase price has not world’s largest collection of
The sale of the shuttered adviser to the president. He health insurance and pen- been revealed, but CEO rock ‘n’ roll memorabilia.
casino opened in 1990 by acquired the Taj Mahal last sion benefits that the ca- James Allen has said the Hard Rock has long toyed
President Donald Trump year from bankruptcy court sino’s owner before Icahn, purchase and extensive with the idea of opening
was finalized Friday. after Trump was no longer Trump Entertainment Re- renovations will together a casino resort in Atlantic
The Florida-based Hard involved with it, aside from sorts, got a bankruptcy cost about $300 million. City. q
US consumer spending up tiny 0.1 percent in February

MARTIN CRUTSINGER the economy will acceler-
AP Economics Writer ate later this year to rates
WASHINGTON (AP) — U.S. around 2.5 percent or
consumers increased their more if President Donald
spending at the weakest Trump is successful in win-
pace in six months, while ning approval for his eco-
the 12-month rise in con- nomic stimulus package,
sumer prices was the larg- which includes tax cuts,
est in nearly five years. infrastructure spending in-
Consumer spending creases and deregulation.
edged up 0.1 percent in Another reason for the op-
February following a simi- timistic spending outlook
larly sluggish 0.2 percent is the recent surge in con-
increase in January, the sumer confidence, which
Commerce Department by the Conference Board’s
reported Friday. The small measure hit a 16-year high
gains suggest that over- in March.
all economic growth likely The February spending
slowed in the first quarter. figure reflected in part
Incomes, however, were an unusually mild winter,
up a solid 0.4 percent in which sapped demand
February, offering hope for for utilities. Services, the
stronger consumer spend- category that covers util-
ing in the months ahead. A customer buys lunch at Smolak Farms, in North Andover, Mass. U.S. consumers increased their ity payments, was up just
Meanwhile, an inflation spending at the weakest pace in six months, while the 12-month rise in consumer prices was the 0.1 percent. Spending on
gauge closely watched largest in nearly five years. On Friday, March 31, 2017, the Commerce Department says consumer goods was also weak, with
by the Federal Reserve spending edged up a tiny 0.1 percent in February following a 0.2 percent increase in January. purchases of long-lasting
(AP Photo/Elise Amendola)
increased 2.1 percent in durable goods such as au-
February compared to a ate this year after seven ness in spending, which a sudden surge in tax re- tos down 0.1 percent. Non-
year ago. It is the sharpest years of stagnant rates at accounts for 70 percent of funds in the latter half of durable goods spending
12-month rise since March a record low near zero. In economic activity, many February, elevated levels showed no change.
2012 and slightly above the last two years, the Fed analysts believe growth in of consumer mood, strong The combination of a
the Fed’s 2 percent infla- nudged rates up just one the January-March quarter stock market performance, strong gain in incomes and
tion target. time in each of those years. could slow to a rate of 1.5 rising employment and modest rise in spending
The Fed raised a key inter- The overall economy grew percent or less before ac- disposable income and pushed the saving rate up
est rate in March, just three at a 2.1 percent rate in the celerating in the months household wealth,” pre- to 5.6 percent of after-tax
months after a hike in De- October-December quar- ahead. dicted Chris G. Christopher income in February, the
cember. Officials have ter, supported by a strong “Consumer spending is like- Jr., director of consumer highest level since October
sent signals that the pace gain in consumer spending. ly to pick up in March and economics at HIS Markit. and up from 5.4 percent in
of rate hikes will acceler- But with the recent weak- the second quarter due to Many economists expect January.q

China factory index hits 5-year high as economy gains steam

KELVIN CHAN April 2012, from 51.6 in the growth, Zhao said, adding ding staff for the first time Thursday that the meeting
AP Business Writer previous month. that high-tech manufactur- in five years, as the report’s would be “very difficult.”
HONG KONG (AP) — Chi- The PMI by the Chinese ing grew rapidly while con- employment sub-index rose Meanwhile, the official
na’s factory activity ticked Federation of Logistics and ditions in traditional indus- to 50, the first time it has not non-manufacturing PMI re-
up again last month to its Purchasing is based on a trial production improved. been in contractionary ter- bounded, rising to 55.1 last
highest level in five years, 100-point scale, with num- The report’s measures of ritory since May 2012. month from 54.2, indicat-
according to an official bers above 50 indicating production and new or- Chinese manufacturing ing strengthening domestic
survey released Friday, in a expansion. ders expanded at a faster and trade with the U.S. will demand in China’s service
fresh sign that the world’s “The manufacturing sec- pace in China’s key manu- be on the agenda when sector.
No. 2 economy is picking tor continued to maintain facturing sector, which is a U.S. President Donald China’s PMI is widely
up steam. a steady trend,” said Zhao major part of the broader Trump meets with Chinese watched because it pro-
The index based on a sur- Qinghe of the National Bu- economy employing many counterpart Xi Jinping on vides one of the earliest
vey of purchasing manag- reau of Statistics, which re- millions of workers churn- April 6-7 in Florida. Trump, insights into the economy.
ers climbed for a second leased the report. Produc- ing out electronics, clothes who accused China of A private PMI by finan-
straight month in March to tion and new orders were and toys for export. unfair trade practices dur- cial magazine Caixin and
51.8, its strongest level since key drivers of the latest Factories stopped shed- ing his campaign, tweeted Markit is due Saturday. q