October 15, 2007 — A group of the biggest U.S. banks are ready today to roll out a $100 billion bailout plan to jump-start the wrecked credit mar- ket - but it could trigger new rifts in the financial fraternity. After a weekend marathon of prodding by Treasury Secretary Henry Paulson, Citigroup, JPMorgan Chase and Bank of America plan to unveil a rescue vehicle that will cart off the unwanted junk mortgages clogging up credit markets and wiping out billions in profits at Wall Street banks...
U.S. manufacturing sector shows Dec. weakness
April 11, 2008 on 8:47 am | In Finance |
The U.S. economy got some mixed news Wednesday as construction spending rose in November but the manufacturing sector shows signs of contraction in December.
The Tempe, Ariz.-based Institute of Supply Management, aprivate research group, reported that the U.S. manufacturing sector contracted in December after 10 months of expansion.
The ISM said its manufacturing index registered 47.7 last month. A number under 50 indicates contraction, while a reading above 50 indicates growth.
The December reading was the lowest point for the index since April 2003.
Separately, the U.S. Commerce Department said overall construction spending rose by a slim 0.1 per cent to $1.165 trillion US as a rise in government work and non-residential building projects outpaced deterioration in the residential sector.
In the face of a glut of unsold houses already on the market and rising numbers of foreclosures and defaults, private residential construction spending declined 2.5 per cent in November from October. On an annualized basis, spending came in at $484.9 billion US, which was off more than 17 per cent from the annual rate seen in Nov. 2006.
Private non-residential spending was up by 1.7 per cent for a 14th straight monthly increase, while government construction spending was up 2.5 per cent for its largest increase since December 2006.
Weakness from the housing sector is expected to pull economic growth in the United States down to about 1.5 per cent for the fourth quarter of 2007, and possibly to as little as 0.5 per cent in the first three months of 2008, acccording to some economists. With files from the Associated Press
No Comments yet
Sorry, the comment form is closed at this time.
Precision Drilling results down on weaker energy sector demand »Weaker demand for its servicesin the oilpatch sent Precision Drilling Trust’s earnings down 29 per cent in the first quarter. The Calgary-based firm said its earnings were $158 million, or $1.26 per diluted unit, down from $224 million, or $1.79 per diluted unit, in the first quarter of 2006. Precision Drilling Trust 3-month chart Precision Drilling’s revenue in the quarter was 23 per cent lower than the prior year at $411 million, as its number of Canadian drilling rig operating...