US factory output jumps 1 per cent in July autos furniture textiles

by Josh Boak, The Associated Press Posted Aug 15, 2014 7:35 am MDT WASHINGTON – U.S. factory output rose for the sixth consecutive month in July, led by a jump in the production of motor vehicles, furniture, textiles and metals.Manufacturing production rose 1 per cent in July compared with the prior month, the Federal Reserve reported Friday. Factory output in June was revised slightly higher to a 0.3 per cent increase. Over the past 12 months, manufacturing has risen 4.9 per cent.Demand for autos surged 10.1 per cent last month, the largest increase since July 2009. The broader increase in manufacturing points to stronger growth across the economy, suggesting that manufacturers expect the pace of business investment and consumer spending to improve in the coming months.“Manufacturing will continue to add to the recovery throughout 2014 and into 2015,” said Stuart Hoffman, chief economist at PNC Financial Services.Overall industrial production, which includes manufacturing, mining and utilities, rose 0.4 per cent in July, dragged down by a 3.4 per cent drop in production at utilities.Several other reports suggest that factory production improved this summer.Manufacturers added 28,000 workers last month, according to the government’s jobs report. That builds on the 23,000 employees that factories added in June, a sign that companies expect demand to continue its upward swing.Separately, the Institute for Supply Management, a trade group of purchasing managers, reported that its manufacturing index climbed to 57.1 in July. That’s the highest level since April 2011 and up from 55.3 in June.Anything above 50 signals that manufacturing activity is growing.The increase in the index led Paul Dales, senior U.S. economist at Capital Economics, to conclude that “manufacturing payrolls may soon start to rise by close to 50,000 a month.”Factory orders rose a seasonally adjusted 1.1 per cent in June compared with the previous month, the Commerce Department reported Tuesday. Orders had fallen 0.6 per cent in May after three straight monthly gains.An 8.4 per cent jump in demand for commercial aircraft drove much of the gain, yet orders also picked up for machinery, iron, steel, computers and electronics.Rising factory output should help the current economic expansion to continue.The U.S. economy shrank at a 2.1 per cent annual rate in the first quarter, although it bounced back at an annual clip of 4 per cent in the second quarterMost analysts expect the economy to expand at a roughly 3 per cent rate in the second half the year. AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email US factory output jumps 1 per cent in July; autos, furniture, textiles and metals lead gains read more

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Stock markets slide after latest European Central Bank stimulus plans

TORONTO – Fresh moves by the European Central Bank on its stimulus plans left traders feeling underwhelmed on Thursday and helped pull down North American stock markets.Toronto’s S&P/TSX index closed the session down 139.15 points at 13,324.67, while the Canadian dollar rose 0.06 of a cent at 74.97 cents U.S.The ECB announced a reduction in one of its key interest rates as part of an attempt to stimulate lending, but the bank’s cut on commercial bank deposits to negative 0.3 per cent, from the previous 0.2 per cent, was widely received as disappointing.The announcement caused the euro to jump three per cent against the dollar — a large move.Meanwhile in the United States, the Federal Reserve chairwoman Janet Yellen delivered more comments to solidify expectations of a U.S. interest rate hike later this month.“The ECB not doing a huge amount today kind of clears the runway for the Fed to do a liftoff for interest rates later this month,” said Colin Cieszynski, chief market strategist at CMC Markets Canada.“The way Yellen has been talking this week … they’re going to give it serious consideration.”On Wall Street, the Dow Jones plunged 252.01 points at 17,477.67, the broader S&P 500 index declined 29.89 points to 2,049.62 and the Nasdaq lost 85.70 points to 5,037.53.European stocks also had one of their worst days in months. Germany’s DAX plunged 3.6 per cent, its biggest drop since September. France’s CAC-40 index lost 3.6 per cent and the U.K.’s FTSE lost 2.3 per cent.In commodities, the February gold contract rose $7.40 to US$1,061.20 an ounce, helping make the TSX gold sector one of the sole gainers of the session, rising 1.8 per cent.The energy sector dropped nearly 0.1 per cent as the January crude contract settled $1.14 higher at US$41.08 per barrel and the January contract for natural gas was ahead 1.6 cents at US$2.18.Canada’s six biggest banks finished reporting their latest financial results on Thursday, wrapping up another blockbuster period of results. Overall, the banks posted an 11.4 per cent increase in profits to $8.61 billion, despite concerns that a sluggish domestic economy could slow momentum.The TSX financial sector dropped 1.2 per cent.On Friday, the latest data on the U.S. jobs market is forecast to show 200,000 new jobs created in November, according to economists.Canada will issue its November labour force survey, which is expected to show a drop of 30,000 jobs as the oil sector continues to make sweeping cuts to improve results and temporary employment from the federal election winds down.— with files from The Associated Press.Note to readers: This is a corrected story. A previous version said the energy sector dropped nearly one per cent. by David Friend, The Canadian Press Posted Dec 3, 2015 8:14 am MDT Last Updated Dec 3, 2015 at 4:44 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Stock markets slide after latest European Central Bank stimulus plans read more

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