Mon Oct 28, 2013, 02:08 PM
Purveyor (20,529 posts)
Factory Output Slowdown Shows U.S. Has Little Traction: Economy
By Jeanna Smialek and Lorraine Woellert - Oct 28, 2013
Factory output rose less than forecast in September and contract signings for U.S. home purchases fell the most in three years, showing the economy was having trouble gaining traction before the government shutdown.
The 0.1 percent advance in manufacturing followed a revised 0.5 percent gain in August that was smaller than initially estimated, figures from the Federal Reserve showed today in Washington. Pending sales of previously owned homes slumped 5.6 percent in September, the fourth straight month of declines, the National Association of Realtors reported.
“The economy is in a shutdown-related soft patch in the fourth quarter,” said Nariman Behravesh, chief economist at IHS Inc. in Lexington, Massachusetts, who correctly predicted a 0.6 percent gain in total industrial production, which also includes mines and utilities. “Everyone started to be a little more cautious in September.”
Advances in housing and manufacturing would help generate the employment gains sought by Fed policy makers, who begin a two-day meeting tomorrow. A pickup in consumer and business sentiment depends in part on how companies and households respond to an agreement by lawmakers that funds the government into early next year.
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Response to Purveyor (Original post)
Mon Oct 28, 2013, 02:12 PM
Pretzel_Warrior (8,361 posts)
1. The 99% don't have a lot of spare cash
And are hoarding until recovery really feels solid. Thus, business won't invest. This is one reason sequester level of government spending is bullshit.
Raise wages, raise taxes on wealthiest and consumer demand will follow (which will actually make everyone better off including higher taxed millionaires and billionaires).