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BUSINESS Tuesday 2 May 2017
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US builders trimmed construction spending in March

MARTIN CRUTSINGER Commerce Department ond highest on record. The Residential construction 0.7 percent. That was the
AP Economics Writer reported Monday. In Febru- figure underscores the key climbed 1.2 percent to the weakest showing in three
WASHINGTON (AP) — U.S. ary, it rose 1.8 percent to a role construction is playing highest level since June years.
builders trimmed construc- record high of $1.22 trillion. in the overall economy, 2007, a period dating back Nonresidential building fell
tion spending slightly in The result in March reflect- especially in home build- to the housing boom of the 1.3 percent in March as
March, one month after ed drops in nonresidential ing. Demand for homes past decade. In the first spending on office build-
building activity hit an all- construction and in the has been rising amid low three months of the year, ings and the category that
time high. government sector, which unemployment and rising home construction grew at covers shopping centers
Construction spending offset a strong increase in incomes, but many buyers a 13.7 percent rate, one of both fell. Government ac-
slipped 0.2 percent in residential activity. have been frustrated by the few bright spots in a dis- tivity dropped 0.9 percent
March to a seasonally ad- Even with the slight decline, limited inventory and rising mal quarter in which over- with weakness in the state
justed $1.218 trillion, the March activity was the sec- prices. all growth slipped to just and local level.q

US consumer spending flat for second month in March

MARTIN CRUTSINGER growth of 3 percent or bet- by job gains, rising wages ic expansion, the slowest in trade deals. But econo-
AP Economics Writer ter and they are forecast- and increased consumer the post-war period. mists believe that Trump’s
WASHINGTON (AP) — ing growth for the entire confidence. But the poor Trump promised during the growth goal will be hard to
U.S. consumers cut back year of around 2.3 percent, first-quarter performance campaign to double eco- achieve given the head-
sharply on buying dura- winds the economy faces,
ble goods such as autos with an aging workforce
in March, leaving overall and scant gains in recent
spending unchanged for productivity.
a second straight month. The March spending report
A slowdown by consumers showed that incomes grew
was a major reason overall a modest 0.2 percent after
economic growth slowed stronger increases of 0.3
so sharply over the winter. percent in February and
Consumer spending was 0.4 percent in January.
unchanged in March after The combination of weak
also being flat in February spending growth and
and posting only a mod- stronger income growth
est rise of 0.2 percent in pushed the saving rate to
January, the Commerce 5.9 percent of after-tax in-
Department reported come in March, up from
Monday. For the January- 5.7 percent in February.
March quarter, the sharp A key inflation gauge
slowdown in consumer closely watched by the
spending was a key reason Federal Reserve showed
growth, as measured by a 0.2 percent decline in
the gross domestic prod- March while core inflation,
uct, slowed to an annual which excludes food and
rate of just 0.7 percent, the energy, fell 0.1 percent,
poorest performance in This photo shows cars on a dealer lot in Pittsburgh. U.S. consumers cut back sharply in spending the first decline since Sep-
three years. on durable goods such as autos in March 2017, leaving overall spending unchanged for a second tember 2001. For the 12
Economists believe growth straight month. The slowdown in consumer activity was a major reason overall economic growth months ending in March,
slowed so sharply in the winter.
will bounce back in the (AP Photo/Gene J. Puskar) core inflation has risen 1.6
current April-June pe- percent, down from a 1.8
riod, helped by contin- up from 1.6 percent GDP underscored the chal- nomic growth to 4 percent percent increase in Febru-
ued strong job gains, rising growth in 2016, the poorest lenge President Donald or better through a com- ary. That performance rep-
wages and increased con- showing in five years. Trump faces in lifting eco- bination of tax cuts for in- resented a small setback
sumer confidence. Many Analysts believe the nomic growth, which has dividuals and businesses, for the Fed’s goal of get-
analysts are looking for a bounce back in the cur- lagged over the nearly deregulation and tougher ting inflation back to annu-
second quarter surge to rent quarter will be helped eight years of this econom- enforcement of America’s al increases of 2 percent.q

American factories expanded at slower pace in April

PAUL WISEMAN in February. The April read- in 2016. “We’re still in very, bounced back after being the slowest pace in more
AP Economics Writer ing was weaker than econ- very good shape,” he said. hurt in early 2016 and late than seven years, the Com-
WASHINGTON (AP) — omists expected and was New orders and hiring grew 2015 by cutbacks in the en- merce Department report-
American factories grew for the lowest since Decem- more slowly in April, but ergy industry, a reaction to ed last week. But the Amer-
the eighth straight month in ber’s 54.5. But it was still sol- production and export or- low oil prices, and a strong ican job market has re-
April but at a slower pace id: Anything above 50 sig- ders sped up. dollar, which makes U.S. mained healthy. Employers
than in March. nals that manufacturing is Sixteen of 18 manufac- products costlier in foreign are adding 178,000 jobs a
The Institute for Supply Man- growing. Bradley Holcomb, turing industries reported markets. month so far this year, and
agement, a trade group of chair of the ISM’s manufac- growth last month, led by The overall U.S. economy the unemployment rate
purchasing managers, said turing survey committee, makers of electrical equip- grew at annual pace of has fallen to 4.5 percent,
Monday that its manufac- noted that every monthly ment, appliances and just 0.7 percent from Janu- lowest in a decade. Manu-
turing index slipped to 54.8 reading in 2017 has been components. ary through March as con- facturers have added jobs
from 57.2 in March and 57.7 higher than any reading American factories have sumer spending grew at for four straight months.q