Mixed News Out of US
Fri, May 2 2008, 01:23 GMT
by Andrei Pehar
The ISM Manufacturing Index held steady at 48.6, while the actual manufacturing prices rose slightly from 83.5 to 84.5 The core PCE price index also rose by 0.2% month-over-month, compared with 0.1% the prior month. GDP is also holding steady at 0.6% for the quarter.
Unemployment claims rose to 380,000 – 35,000 more than last month. Personal income declined from 0.5% to 0.3%, meanwhile personal spending rose from 0.1% to 0.4% (indicating perhaps that Americans are relying even more on credit). Job cuts rose drastically from 9.4% to 27.4%, according to placement firm Challenger, Gray, & Christmas.
The Fed cut its fund rate by 25 basis points to 2.00%, however in its issued statement it did not indicate that this was to be the last cut in the series, as was widely anticipated. In fact, they cited growing concern over recession, leaving the door open to further cuts in the future. Adding to these fears, construction spending dropped sharply this month, from 0.4% to -1.1%.
All eyes now turn to the non-farm payroll numbers due out later today, widely expected to post another loss of 80,000 jobs.
