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9/20/12, "US economy hobbled by weak hiring, manufacturing," AP via Bloomberg
"A trio of reports Thursday offered a reminder that the U.S. economy is struggling to grow and add jobs. The number of people seeking unemployment benefits last week stayed
near a level that signals only weak hiring in September. Manufacturing
shrank for a fifth straight month in the Philadelphia region, a sign
that weaker global growth has hurt demand for American-made goods. And a
measure of future economy activity declined for the second time in
three months.
The data followed a poor month of hiring in August
and the Federal Reserve's move last week to launch new stimulus measures
to give the hobbled recovery a jolt.
"There certainly doesn't
appear to be much improvement in the performance of the economy," said
Sam Bullard, senior economist at Wells Fargo Securities. "Manufacturing
continues to soften and decelerate. We shouldn't expect to see
substantial gains in hiring or output from manufacturers any time soon."
Thursday's reports showed:
— Weekly applications for unemployment benefits fell by only 3,000
last week to a seasonally adjusted 382,000, the Labor Department said.
The four-week average, a less volatile measure, rose for the fifth
straight week to 377,750. Applications, which are a proxy for layoffs,
typically need to fall below 375,000 consistently to signal the job
market is strong enough to lower unemployment.
— The Federal
Reserve Bank of Philadelphia says its September index of regional
manufacturing activity stayed below zero, which signals contraction in
the market. While the index rose to -1.9, it has been negative since
May. Nearly 23 percent of firms in the region reported declines in
activity this month, only slight improvement from 30 percent of firms in
August. The region includes firms in Pennsylvania, Delaware and New
Jersey.
— The Conference Board said its index of leading indicators dipped
0.1 percent in August. The report noted that manufacturing orders,
consumer confidence and average weekly manufacturing hours all slipped.
The index is intended to anticipate economic conditions three to six
months out.
Hiring has languished since winter, and the unemployment rate remains elevated at 8.1 percent.
U.S.
manufacturing, which had helped pulled the economy out of the Great
Recession three years ago, has weakened since the spring. Factories have
been hurt by a decline in consumer spending and slower global growth
that has cut demand for U.S. exports."...
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9/20/12, "US factories struggle, Europe and China slump," Reuters
"U.S. manufacturing suffered its weakest quarter in three years and
conditions at European businesses worsened, surveys showed on Thursday,
while China's economy continued to lose momentum."...
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