US factory output growth slowing

15 September 2011 Last updated at 20:12 GMT Car producers saw a big rise in output in August US factory output rose for a second straight month in August, but the rate of growth slowed slightly in comparison with July, official figures have shown.

Factory output last month increased by 0.5% compared with 0.6% in July, said the Federal Reserve data.

Car output was the big riser, adding 2.6% as supplies from Japan return to normal following March's tsunami.

Overall industrial production, which includes the energy sector, rose 0.2%, weaker than July's 0.9% rise.

The Federal Reserve said earlier this month that stock market volatility and rising economic uncertainty were undermining confidence in the US economy.

It is expected to announce fresh measures to boost the economy following its next rate-setting meeting which begins on 20 September.

The US unemployment rate remains at 9.1% after no new jobs were added in August for the first time since 1945.

View the original article here

Read More

Jackson Hole Summit to Help Boost the Slowing US Economy

Jackson Hole Summit speech of Federal Reserve Board of Governors Chairman Ben Bernanke on Friday may hint at yet another monetary push to boost the slowing U.S. economy.

However, the Wall Street Journal reported most economists think that such suggestions at the annual conference of economists in this Wyoming resort “are overly optimistic.”

“Bernanke is unlikely to fulfill the markets’ hopes that he will pave the way for a third round of asset purchases (QE3),” economists from Toronto’s Capital Economics wrote in a note Wednesday that was reported in the Wall Street Journal. “And even if he did, QE3 is unlikely to boost the economy, equity prices or commodity prices by as much as QE1 and QE2 [did].”

At last year’s conference, Bernanke unveiled plans for a $600-million round of bond buying, which the Journal said he “essentially unveiled QE2.” The action triggered positive market reaction.

This year, markets will be listening closely to Bernanke’s words for any hint at a stimulus from the United States government. The New York Times reported that speeches from the Fed are made to “cause minimal market excitement – either good or bad” and previous announcements by the Fed suggest little change in policy.

Read full article HERE.

Filed Under: News
Tagged: Get updated with the hottest entertainment news daily by email!

Follow Starmometer on Twitter and Facebook!

View the original article here

Read More