Page 24 - ARUBA TODAY

Friday 12 May 2017 BUSINESS
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American Inflation at the wholesale level jumped in April

By MARTIN CRUTSINGER ter being quiet for years. costs were up 0.9 percent. Both the overall number quickly.
AP Economics Writer The Labor Department Over the past 12 months, and core inflation were up “Underlying factors that
WASHINGTON (AP) — Infla- said Thursday that its pro- overall prices at the whole- more sharply than analysts drive inflation are all work-
tion at the wholesale level ducer price index, which sale level have risen 2.5 per- had been expecting. Some ing toward creating faster
jumped in April by the larg- measures inflation before cent, the largest 12-month cautioned that if this gain price increases,” said Joel
est amount in three months, it reaches the consumer, gain since early 2012. carries over to the consum- Naroff, chief economist
fueled by rising prices of rose 0.5 percent in April. Excluding food and energy er price report, which will at Naroff Economic Advi-
food and energy. Even ex- That represented a sharp and trade services, core in- be released Friday, it could sors. “While rising whole-
cluding the volatile energy rebound following a 0.1 flation was up 0.7 percent set off warning alarms at sale costs don’t neces-
and food categories, core percent decline in March. It in April. Over the past 12 the Federal Reserve that sarily translate into higher
inflation was up sharply was the largest one-month months, core inflation is up inflation pressures are build- consumer prices, the jump
as well, raising concerns gain since January. 2.1 percent. Both gains are ing faster and the central in producer expenses is a
about whether inflation is Energy prices rose 0.8 per- records in a data series that bank may need to start sign inflation pressures are
starting to edge higher af- cent in April, while food goes back to just 2013. raising interest rates more building.”q

Lower sales drag down Macy’s profit, results miss forecast

NEW YORK (AP) — Lower straight period of declines it tries to regroup as people sistent softness in hand- its online and brick-and-
sales dragged Macy’s prof- for the important metric. make fewer visits to the bags, fashion jewelry, and mortar experiences.
it down for the first quarter, Macy’s, like other tradition- malls where its stores are of- watches,” analysts at Jef- Neil Saunders, managing
highlighting the challenge al department stores, has ten an anchor. fries said. director of GlobalData
for retailers as customers Retail, called the results
shift to more online shop- “gloomy.”
ping and store locations While Macy’s has a clearer
lose traffic. sense of direction and a
Macy’s results fell short of “rudimentary” map, “the
Wall Street expectations, distance it needs to travel
and the nation’s largest over the next few years
department store chain is enormous,” he wrote.
warned sales will fall further “We question whether the
this year. Its shares tumbled company is bold, nimble or
14 percent, and gloom healthy enough to cover
about the overall sector such ground.”
brought the shares of sev- Under Lundgren, the Cin-
eral other chains down as cinnati-based chain had
well. promoted more exclusive
“It’s a tough time to be a merchandise. Macy’s has
(department) store,” Citi also tested a
said in an analyst note. n off-price strategy and
Rival Kohl’s also reported new ideas like self-service
a drop in first-quarter rev- in some of its shoe depart-
enue, but cost cuts helped ments.
boost profit, which topped Gennette said Macy’s has
expectations. Its shares fell been encouraged by the
nearly 6 percent. performance of the chang-
The climate is a big chal- Shoppers holding bags from Macy’s wait to cross an intersection in New York. Macy’s Inc. re- es they’ve tested in areas
ported earnings, Thursday, May 11, 2017.
lenge for Macy’s new CEO (AP Photo/Bebeto Matthews) like women’s shoes, fine
Jeff Gennette, who suc- jewelry, and furniture and
ceeded longtime Chief been hurt as online leader Strength in categories like Gennette said Thursday mattresses. Saunders cited
Executive Terry Lundgren in Amazon and off-price ri- women’s clothing, fine jew- the company would invest the changes in the shoe
March. vals like TJ Maxx take busi- elry, fragrances, women’s to aggressively expand its and home departments as
Sales at established stores ness away. Macy’s also shoes, and furniture “was digital and mobile business signs Macy’s thinking is on
fell 5.2 percent, the ninth has been closing stores as more than offset by per- and continue integrating the right track.q

Nissan annual profit rises on strong US, China, Europe sales

By YURI KAGEYAMA ny said Thursday. cost-cutting efforts. March 2018. connectivity technologies,
AP Business Writer But Nissan is forecasting a It said sales for the fiscal Yokohama-based Nissan’s but Nissan, which makes
TOKYO (AP) — Japanese 19 percent drop in profit year that ended in March U.S. sales rose 4 percent the Leaf electric car and
automaker Nissan Motor in the current fiscal year 2017 dipped nearly 4 per- on-year on solid demand Infiniti luxury models, has
Co.’s profit rose by 27 per- through March 2018 to 535 cent to 11.7 trillion yen for the Rogue and Altima been among the most ag-
cent in the fiscal year that billion yen ($4.7 billion) be- ($103 billion). sedan. Sales in China rose gressive.
ended in March to 663.5 cause it won’t have the Nissan, which did not break 8 percent, while sales in Eu- Hurting Nissan’s bottom line
billion yen ($5.8 billion), boost from the previous fis- down quarterly numbers, rope excluding Russia rose in recent years is an unfa-
as strong sales in the U.S., cal year’s sale of parts mak- said it sold 5.63 million ve- 7 percent for Nissan, which vorable exchange rate.
China and Europe and the er Calsonic Kansei, while hicles globally in the last fis- is allied with Renault SA of A strong yen erodes the
sale of its stake in a parts research and raw material cal year. It expects sales to France. All major automak- value of overseas earnings
maker offset damage from expenses are expected to grow to 5.83 million vehicles ers are working on autono- by Japanese exporters like
the strong yen, the compa- bite into bigger sales and in the fiscal year through mous driving and mobility Nissan. q