US grows but price pressures rise

The US recovery was boosted by another blockbuster series of positive economic releases, yesterday. In Philadelphia, manufacturing activity soared to a 27-year high, the state’s Federal Reserve board stated. The business conditions index jumped from 35.9 in February, to 43.4 this month. Across the whole country, the Conference Board's index of leading indicators rose for an eighth straight month in February, increasing by 0.8 per cent. The figures suggest the US economy remains well positioned to withstand challenges like high unemployment and rising energy prices. However, stronger than expected price rises for February were also revealed yesterday. Consumer prices were up 0.5 per cent, to 2.1 per cent.