Post by unlawflcombatnt on Aug 1, 2007 14:28:21 GMT -6
Manufacturing growth rate slows; fewer private jobs
By Herbert Lash
"Manufacturing grew at a slower rate in July as a drop in new orders spawned caution among factory managers, and U.S. private employers probably added jobs last month at their slowest rate in four years, according to two reports on Wednesday.
In the key housing sector, demand for mortgage applications slid last week to the weakest level in more than five months, an industry group said, suggesting the beleaguered U.S. housing sector has yet to hit bottom....
"Manufacturing is showing some signs of at least a temporarily slowing economy here," said Andrew Richman, a managing director at SunTrust's personal asset management....
But the economic news was taking a back seat to investor concerns about the subprime mortgage market, Richman said....
U.S. stock indexes swung wildly between positive and negative territory in Wednesday's session, with stocks falling on the data while the dollar was mixed....
The Institute for Supply Management said its index of national factory activity fell last month to 53.8, its lowest since March, and down from 56.0 in June.
Consumer spending eased in the second quarter because of the housing sector's slump and rising gasoline costs. Analysts said factories could be responding to what might be perceived as a lack of demand.
ANEMIC JOB GROWTH
A report from ADP showed the private sector created 48,000 jobs in July, below a downwardly revised increase of 143,000 in June as the number of manufacturing jobs fell....
The July number was ADP's lowest since July 2003, casting doubt on expectations for the government's July employment report on Friday.
Some economists lowered their forecasts for Friday's jobs data. Deutsche Bank cut its forecast for nonfarm payrolls to 90,000 from 150,000....
Joel Prakken, chairman of Macroeconomic Advisers, which jointly developed the ADP report, said a forecast of 75,000 might be more appropriate for Friday's figures. Goldman Sachs also said ADP's report implies payroll growth of about 75,000...."
By Herbert Lash
"Manufacturing grew at a slower rate in July as a drop in new orders spawned caution among factory managers, and U.S. private employers probably added jobs last month at their slowest rate in four years, according to two reports on Wednesday.
In the key housing sector, demand for mortgage applications slid last week to the weakest level in more than five months, an industry group said, suggesting the beleaguered U.S. housing sector has yet to hit bottom....
"Manufacturing is showing some signs of at least a temporarily slowing economy here," said Andrew Richman, a managing director at SunTrust's personal asset management....
But the economic news was taking a back seat to investor concerns about the subprime mortgage market, Richman said....
U.S. stock indexes swung wildly between positive and negative territory in Wednesday's session, with stocks falling on the data while the dollar was mixed....
The Institute for Supply Management said its index of national factory activity fell last month to 53.8, its lowest since March, and down from 56.0 in June.
Consumer spending eased in the second quarter because of the housing sector's slump and rising gasoline costs. Analysts said factories could be responding to what might be perceived as a lack of demand.
ANEMIC JOB GROWTH
A report from ADP showed the private sector created 48,000 jobs in July, below a downwardly revised increase of 143,000 in June as the number of manufacturing jobs fell....
The July number was ADP's lowest since July 2003, casting doubt on expectations for the government's July employment report on Friday.
Some economists lowered their forecasts for Friday's jobs data. Deutsche Bank cut its forecast for nonfarm payrolls to 90,000 from 150,000....
Joel Prakken, chairman of Macroeconomic Advisers, which jointly developed the ADP report, said a forecast of 75,000 might be more appropriate for Friday's figures. Goldman Sachs also said ADP's report implies payroll growth of about 75,000...."