US jobless data fuels fears over economy
US MANUFACTURING output fell unexpectedly in May while recent falls in unemployment ground to a halt last week, official data showed yesterday, adding to worries of an economic slowdown.
Meanwhile Treasury secretary Tim Geithner said the country should avoid “severe, immediate austerity” if it wants to keep growing.
Geithner called for a “balanced approach to restoring long-term fiscal credibility,” though he has also recently warned that the budget deficit must be reined in.
Factory activity fell for the first time in eight months, with the Philadelphia Fed’s survey coming in at minus 5.8, down from 8.5 in April.
The new orders index fell from 2.7 to minus 1.2 and employment fell 19 points to minus 1.3, as 51.3 per cent of firms reported low expected sales growth as a major factor limiting hiring.
The number of new claims for unemployment benefits came in at 370,000 last week, the Labor Department said – the same level as the previous week, which was revised up in yesterday’s release.