US fac­tory or­ders fall for sec­ond straight month

Kuwait Times - - BUSINESS -

WASH­ING­TON:

Or­ders to US fac­to­ries fell for the sec­ond straight month in May, a po­ten­tially wor­ri­some sign for Amer­i­can in­dus­try. The Com­merce De­part­ments re­ported yes­ter­day that fac­tory or­ders de­clined 0.8 per­cent in May, the big­gest drop since last Novem­ber. They fell 0.3 per­cent in April. Econ­o­mists had ex­pected fac­tory or­ders to drop again in May - but the fall was twice what they’d fore­cast. Ex­clud­ing the volatile trans­porta­tion sec­tor, fac­tory or­ders fell 0.3 per­cent in May. Or­ders for civil­ian air­craft plunged 11.6 per­cent af­ter drop­ping 12.2 per­cent in April. Com­puter or­ders slid 2.1 per­cent

Or­ders rose a mod­est 0.2 per­cent in a cat­e­gory - cap­i­tal goods ex­clud­ing air­craft and mil­i­tary equip­ment that is closely mon­i­tored for signs of busi­nesses’ in­vest­ment plans. Amer­i­can man­u­fac­tur­ing has been send­ing mixed sig­nals. The Fed­eral Re­serve re­ported last month that fac­tory fell 0.4 in May, re­vers­ing a sharp in­crease in April. The In­sti­tute for Sup­ply Man­age­ment re­ported Mon­day that its man­u­fac­tur­ing in­dex rose last month to the high­est level since Au­gust 2014.

US fac­to­ries have re­bounded from a slump in late 2015 and early 2016 caused by cut­backs in the en­ergy in­dus­try and a strong dol­lar that made Amer­i­can prod­ucts costlier over­seas. But over­all eco­nomic growth has been lack­lus­ter. The US econ­omy ex­panded at a 1.4 per­cent an­nual pace from Jan­uary through March. Con­sumer spend­ing on lon­glast­ing durable goods dropped at a 1.6 per­cent an­nual pace in the first quar­ter, the weak­est show­ing since the sec­ond quar­ter of 2011.

Else­where Petroleum-linked shares tum­bled early yes­ter­day, on lower oil prices, pres­sur­ing US stocks, while some big tech­nol­ogy shares were mod­estly pos­i­tive. ExxonMo­bil and Chevron were among the big­gest losers in the Dow as oil prices slid on wor­ries about higher out­put from mem­bers of the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries.

But large tech­nol­ogy com­pa­nies in­clud­ing Ap­ple, Ama­zon and Mi­crosoft ad­vanced mod­estly. Tech shares have been volatile for the last sev­eral weeks, with some an­a­lysts de­scrib­ing a ro­ta­tion to dis­fa­vored sec­tors from af­ter the Nas­daq surged to a se­ries of records this spring. About 20 min­utes into trad­ing, the Dow Jones In­dus­trial Av­er­age was down 0.2 per­cent at 21,441.82.

The broad-based S&P 500 lost 0.1 per­cent at 2,425.92, while the techrich Nas­daq Com­pos­ite In­dex was flat at 6,111.05. US mar­kets were closed Tues­day for the In­de­pen­dence Day hol­i­day. Key events this week in­clude the re­lease of Fed­eral Re­serve meet­ing min­utes, which are ex­pected to shed light on the US cen­tral bank’s think­ing on rais­ing in­ter­est rates fur­ther and Fri­day’s re­lease of the June em­ploy­ment re­port, ex­pected to show an ad­di­tion of 173,000 jobs. —AP

CANTON: In this April 6, 2016, photograph, a tech­ni­cian uses a lift to move a back seat sec­tion into a new Al­tima on the assem­bly line at the Nis­san Canton Ve­hi­cle Assem­bly Plant. —AP

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.